Candi\'s Treats is a local bakery in a small midwestern town. Candi\'s specializ

Question

Candi's Treats is a local bakery in a small midwestern town. Candi's specializes in gourmet cookies. Candi's daily demand and supply curves for gourmet cookies are presented to the right. Equilibrium price for gourmet cookies is dozen and equilibrium quantity i . (Note: This diagram is not to scale so you need to find the demand and supply equations and set quantity demanded equal to quantity supplied to find equilibrium price and quantity.) A. $7.50; 40 7. $10 per - dozen D. $7.80; 30 E. $8.00; 28 C. $7.75; 32 0 60 150 Q

Explanation / Answer

here firslt form the demand and supply equations,

we can see there are two straight lines, sor form the straight line equations with two point method

so for demand

P - 0 = 10/0-150(Q-150)

SO P= -(1/15)(Q-150)

SO 15P = 150-Q ------- 1

SIMILARLY FOR SUPPLY

P-4 = 6/60(Q)

10P-40 = Q ------------- 2

SOLVE 1 AND 2

15P = 150- 10P+40

25P = 190

P = 7.6 and q = 36

so answer is B

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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