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The demand curve for a product is given by q= 120, 000 – 500p and the supply curve is given by q= 1000p for 0

The demand curve for a product is given by q= 120, 000 – 500p and the supply curve is given by q= 1000p for 0

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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The demand curve for a product is given by q= 120, 000 - 500p and the supply curve is given by g = 1000p for 0 <q< 120, 000, where price, p, is in dollars. (a) At a price of $115, what quantity are consumers willing to buy and what quantity are producers willing to supply? Will the market push prices up or down? Consumers are willing to buy units. X Producers are willing to supply units. The market will push prices down (b) Find the equilibrium price and quantity. Does your answer to part (a) support the observation that market forces tend to push prices closer to the equilibrium price? The equilibrium price is p* = $ The equilibrium quantity is q* units. X The equilibrium price is smaller than $115, which agrees with the conclusion to part (a).
Transcribed Image Text:The demand curve for a product is given by q= 120, 000 - 500p and the supply curve is given by g = 1000p for 0 <q< 120, 000, where price, p, is in dollars. (a) At a price of $115, what quantity are consumers willing to buy and what quantity are producers willing to supply? Will the market push prices up or down? Consumers are willing to buy units. X Producers are willing to supply units. The market will push prices down (b) Find the equilibrium price and quantity. Does your answer to part (a) support the observation that market forces tend to push prices closer to the equilibrium price? The equilibrium price is p* = $ The equilibrium quantity is q* units. X The equilibrium price is smaller than $115, which agrees with the conclusion to part (a).
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