Question

Supply and Demand — End of Chapter Problem

The inverse demand for carbon‑steel chef’s knives is given by ?=120−12??P=120−12QD, where ?P is the price of a chef’s knife, and ??QD is the quantity of chef’s knives desired per week, in thousands. The inverse supply of chef’s knives is given by ?=20+2??P=20+2QS, where ??QS is the quantity of chef’s knives offered for sale each week, in thousands.

a. Accurately graph the inverse supply and the inverse demand curves. (pleases draw and write specific value ex. demand(120,??) , supply (20,??)

b. According to the graph in part a, what are the buyers’ and sellers’ choke prices?

Buyer’s choke price: $

Seller’s choke price: $

c. The market equilibrium quantity is________ thousand.

d. The market equilibrium price is $____

Answer 1