Question

You can sell 130 pet chias per week if they are marked at $1 each, but...

You can sell 130 pet chias per week if they are marked at $1 each, but only 90 each week if they are marked at $2/chia. Your chia supplier is prepared to sell you 70 chias each week if they are marked at $1/chia, and 150 each week if they are marked at $2 per chia.

(a) Write down the associated linear demand and supply functions.

demand function     q(p) =
supply function     q(p) =


(b) At what price should the chias be marked so that there is neither a surplus nor a shortage of chias?
$

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