Question

The supply function for a product is

2p − q − 40 = 0,

while the demand function for the same product is

(p + 20)(q + 10) = 7200.

Find the market equilibrium point.

(q, p) = ( )

Answer #1

a) Suppose the market is defined by
Demand: Q = 138 – 2P
Supply: Q = 5 + 4P
At a price of P = 38, what is the size of the surplus that will
exist in the market?
b) Suppose the market is defined by
Demand: Q = 159 – 3P
Supply: Q = 5 + 2P
At a price of P = 15, what is the size of the shortage that will
exist in the market?
c)
A...

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QS=0.5P (supply curve)
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