Suppose that the demand and price for strawberries are related by p = D(q) = 5 -

Question

Suppose that the demand and price for strawberries are related by p = D(q) = 5 - 0.25q, where p is the price (in dollars) and q is the quantity demanded (in hundreds of quarts). Find the price at each level of demand. (a) 0 quarts (b) 400 quarts (c) 840 quarts Find the quantity demanded for the strawberries at each price. (d) $4.50 (e) $3.25 (f) $2.40 (g) Graph p = 5 - 0.25q. Suppose the price and supply of strawberries are related by p = S(q) = 0.25q, where p is the price (in dollars) and q is the quantity supplied (in hundreds of quarts) of strawberries. Find the quantity sup- plied at each price (h) $0 (i) $2 (j) $4.50 (k) Graph p = 0.75q on the same axis used for part (g). (l) Find the equilibrium quantity and the equilibrium price.

Explanation / Answer

Solution:

Suppose that the demand and price for strawberries are related by:

p = D(q) = 5 - 0.25q

Where p is the price, and q is the demand (in hundreds of quarts). Find the price at each level of demand.

a.) If 0 quarts, use q = 0
p= 5 - 0.25(0)
p = $5

b.) If 400 quarts, Use q=4, since it is in hundreds of quarts
p = 5 - 0.25(4)
p = $4.00

c.) If 840 quarts, Use q = 8.40, since it is in hundreds of quarts
p = 5 - 0.25(8.4)
p = $2.90

Find the quantity demand for the strawberries at each price. (This is just the same formula but reversed)

If p = 5 - 0.25q
=> (p - 5)/(-.25) = q
=> q = - 4p + 20

d.) If p = $4.50

q = -4(4.50) + 20
q = 2
This would be 200 quarts

e.) If p = $3.25

q = -4(3.25) + 20
q = 7
This would be 700 quarts

f.) If p = $2.40

q = -4(2.40) + 20
q = 10.4
This would be 1040 quarts

let given p = 0.25q => p = (1/4)q => q = 4p

h.) if p = $0 , then q = 4*0 = 0 quarts

i.) if p = $2, then q = 4*2 = 8 = 800 quarts

j.) if p = $4.50, then q = 4*4.50 =18 = 1800 quarts

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.