The demand for pocket calculators is given by the function
Question # 00659414
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Updated on: 03/08/2018 10:34 AM Due on: 03/08/2018
The demand for pocket calculators is given by the function: P = 6 - 0.5Qd; and the supply is given by the function: 6 = Qs - P; where = Qd = quantity demanded, Qs= quantity supplied and P = price.
a. What is the equilibrium condition?
b. Solve for the equilibrium price and quantity in this market.
c. Calculate the demand and supply for calculators if the market price is $15 per barrel. What problem exists in the economy? What would you expect to happen to price?
d. Calculate the demand and supply for calculators if the market price is $4 per barrel. What problem exists in the economy? What would you expect to happen to price?
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Solution: The demand for pocket calculators is given by the function