Supply and Demand Suppose that the quantity supplied S and the quantity demanded D of T-shirts at a concert are given by the following functions: S ( p ) = − 6 00 + 50p D ( p ) = 1200 − 25 p where p is the price of a T-shirt. a. Find the equilibrium price for T-shirts at this concert. What is the equilibrium quantity? b. Determine the prices for which quantity demanded is greater than quantity supplied. c. What do you think will eventually happen to the price of T-shirts if quantity demanded is greater than quantity supplied?
Supply and Demand Suppose that the quantity supplied S and the quantity demanded D of T-shirts at a concert are given by the following functions: S ( p ) = − 6 00 + 50p D ( p ) = 1200 − 25 p where p is the price of a T-shirt. a. Find the equilibrium price for T-shirts at this concert. What is the equilibrium quantity? b. Determine the prices for which quantity demanded is greater than quantity supplied. c. What do you think will eventually happen to the price of T-shirts if quantity demanded is greater than quantity supplied?
Solution Summary: The author explains that the equilibrium price for T-shirts at this concert is 24 and the quantity demanded is 600.
Calculus for Business, Economics, Life Sciences, and Social Sciences (14th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY