You can sell 120 pet chias per week if they are marked at $1 each, but only 60 each week if they are marked at $2/chia. Your chia supplier is prepared to sell you 10 chias each week if they are marked at $1/chia, and 50 each week if they are marked at $2 per chia. (a) Write down the associated linear demand and supply functions. demand function q(p)=-60p + 180 q(p) = 40p - 30 supply function (b) At what price should the chias be marked so that there is neither a surplus nor a shortage of chias? HINT [See Example 4.] $1.50 x

You can sell 120 pet chias per week if they are marked at $1 each, but only 60 each week if they are marked at $2/chia. Your chia supplier is prepared to sell you 10 chias each week if they are marked at $1/chia, and 50 each week if they are marked at $2 per chia. (a) Write down the associated linear demand and supply functions. demand function q(p)=-60p + 180 q(p) = 40p - 30 supply function (b) At what price should the chias be marked so that there is neither a surplus nor a shortage of chias? HINT [See Example 4.] $1.50 x

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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