The quantity demanded x each month of Russo Espresso Makers is 250 when the unit

Question

The quantity demanded x each month of Russo Espresso Makers is 250 when the unit price rho is $170; the quantity demanded each month is 1000 when the unit price is $140. The suppliers will market 750 espresso makers If the unit price Is $70. At a unit price of $90, they are willing to market 2250 units. Both the demand and supply equations are known to be linear. (a) Find the demand equation. rho = (b) Find the supply equation. rho = (c) Find the equilibrium quantity and the equilibrium price. equilibrium quantity units

Explanation / Answer

a)

the points are

(250,170) and (1000,140)

slope = 140-170/1000-250 = -1/25

hence

p-170 = -1/25 (x-250)

=>

demand equation

P = -x/25 + 180

b)

(750,70) and (2250,90)

slope = 90-70/2250-750 = 1/75

p-70 =1/75 (x-750)

=>

supply equationn

P = x/75 + 80

c)

x/75 + 80 = -x/25 + 180

=>

4x/75 = 100

x = 1875 units

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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