Suppose there are three stores in a shopping center that would benefit from security lights in the parking lot according to the following inverse demand functions:Inverse DemandStoreA:PA = 60 -QPR = 45 - 20Pc = 30 - 20B:C:If security lights cost $70 each, in other words market supply is P=70, what is the efficient quantity of lights?The efficient quantity of lights is 13. (Enter your response rounded to the nearest integer.)Now, if each store buys its own lights, there will be securtity lights purchased. (Enter your response rounded to the nearest integer.)

The inverse demand function represents the marginal benefits of each store from the security lights…

Answered: Suppose there are three stores in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q3. Assume that the demand curve D(p) given below is the market demand for widgets:Q=D(p)=2372−19p, p > 0 Let the market supply of widgets be given by:Q=S(p)=−3+6p, p > 0 where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price.What is the equilibrium price? Please round your answer to the nearest hundredth.What is the equilibrium quantity? Please round your answer to the nearest integer.What is the price elasticity of demand (include negative sign if negative)? Please round your answer to the nearest hundredth.What is the price elasticity of supply? Please round your answer to the nearest hundredth
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