Suppose the demand and supply curves for eggs in theUnited States are given by the following equations:where Qa= millions of dozens of eggs Americans wouldlike to buy each year; Qs = millions of dozens of eggs U.S.farms would like to sell each year; and P=price per dozenQa 100-20 PQs = 10+40 Peggs.a. Fill in the following table:Price(Per Dozen)$ .50$1.00$1.50$ 2.00$2.50QuantityDemanded (Qa)-QuantitySupplied (Q)b. Use the information in the table to find the equilibriumprice and quantity.c. Graph the demand and supply curves and identify theequilibrium price and quantity.d. Use algebra to solve these equations for the equilibriumprice and quantity.

Answered: Suppose the demand and supply curves…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the demand and supply curves for eggs in the
United States are given by the following equations:
where Qa= millions of dozens of eggs Americans would
like to buy each year; Qs = millions of dozens of eggs U.S.
farms would like to sell each year; and P=price per dozen
Qa 100-20 P
Qs = 10+40 P
eggs.
a. Fill in the following table:
Price
(Per Dozen)
$ .50
$1.00
$1.50
$ 2.00
$2.50
Quantity
Demanded (Qa)
-
Quantity
Supplied (Q)
b. Use the information in the table to find the equilibrium
price and quantity.
c. Graph the demand and supply curves and identify the
equilibrium price and quantity.
d. Use algebra to solve these equations for the equilibrium
price and quantity.

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Introduction

Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market equilibrium point the maximum price which the consumers are willing to pay is exactly equals the minimum price at which the sellers are willing to sell.

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