When sold for $260,000.00, Ferraris have an annual supply of 6431 vehicles and an annual demand of 6518 vehicles. When their price increases to $276,000.00, the annual supply increases to 6907, and the demand decreases to 5886 billion gallons. (a) Assuming that the supply and demand equations are linear, find the supply and demand equations. Supply Equationp = Demand Equation p = (Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity. The slope and y-intercept should be accurate to two decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q =

When sold for $260,000.00, Ferraris have an annual supply of 6431 vehicles and an annual demand of 6518 vehicles. When their price increases to $276,000.00, the annual supply increases to 6907, and the demand decreases to 5886 billion gallons. (a) Assuming that the supply and demand equations are linear, find the supply and demand equations. Supply Equationp = Demand Equation p = (Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity. The slope and y-intercept should be accurate to two decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When sold for $260,000.00, Ferraris have an annual supply of 6431 vehicles and an annual demand of 6518 vehicles. When their price
increases to $276,000.00, the annual supply increases to 6907, and the demand decreases to 5886 billion gallons.
(a) Assuming that the supply and demand equations are linear, find the supply and demand equations.
Supply Equation p =
Demand Equation p =
(Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity. The slope and y-intercept
should be accurate to two decimal places).
(b) Find the Equilibrium price and quantity.
Equilibrium price p =
Equilibrium quantity q =
(Note: The equilibrium price and quantity should be accurate to two decimal places, and the equilibrium price should include a dollar sign).

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