The following equations represent the demand and supply functions associated wit

Question

The following equations represent the demand and supply functions associated with a given passenger railway route. For a particular season: Demand function: V=400-12P Supply function: P=1.5-0.03V+.006V^2 A) determine equilibrium demand and price B) what is the maximum along the route? C) what is the minimum ticket price? D) repeat part a) with supply function P=1.5-.03V+.006V^2 The following equations represent the demand and supply functions associated with a given passenger railway route. For a particular season: Demand function: V=400-12P Supply function: P=1.5-0.03V+.006V^2 A) determine equilibrium demand and price B) what is the maximum along the route? C) what is the minimum ticket price? D) repeat part a) with supply function P=1.5-.03V+.006V^2 Demand function: V=400-12P Supply function: P=1.5-0.03V+.006V^2 A) determine equilibrium demand and price B) what is the maximum along the route? C) what is the minimum ticket price? D) repeat part a) with supply function P=1.5-.03V+.006V^2

Explanation / Answer

A)Equi demand where d=s

400-1.5= 12p-0.03v+0.112v

398.5=12p+0.09v

Price= 333 Quantity= 66

B) Demand = 400

C) Maximum= 400x12= 480

C) P= V-400/12 =334/12= 36

D) 1.5-.03x66x.012x66

= 326 (approx)

By,

Nishant Bhatt

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