The quantity demanded of Fitbit devices is 8,025 units when the price is $260. At a unit price of $200, demand increases to 10,000 units. The manufacturer will not market any of the device at a price of $100 or less. However for each $50 increase in price above $100, the manufacturer will market an additional 1,000 units. Assume that both the supply equation and the demand equation are linear. a) Find the supply equation. b) Find the demand equation. c) Find the equilibrium quantity. d) Find the equilibrium price.

The quantity demanded of Fitbit devices is 8,025 units when the price is $260. At a unit price of $200, demand increases to 10,000 units. The manufacturer will not market any of the device at a price of $100 or less. However for each $50 increase in price above $100, the manufacturer will market an additional 1,000 units. Assume that both the supply equation and the demand equation are linear. a) Find the supply equation. b) Find the demand equation. c) Find the equilibrium quantity. d) Find the equilibrium price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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