1ai) In Colorado, consumers demand pencils D: Q = 60 - 2P. Transpose into P = Fo

Question

1ai) In Colorado, consumers demand pencils D: Q = 60 - 2P. Transpose into P = Form. Show work clearly.

1aii) Domestic producers supply pencils S: Q = -24 + 1.5P Transpose into P = Form. Show work clearly.

1b) Determine the equilibrium price and quantity for Colorado. Show work clearly.

1c) Graph Colorado showing all intercepts in quadrant 1, label equilibrium price and quantity.

2ai) In New York, consumers demand paper D: Q = 90 - 3P. Transpose into P = Form. Show work clearly.

2aii) Domestic Producers supply paper S: Q = 34 + .5P. Transpose into P = Form. Show work clearly.

2b) Determine the equilibrium price and quantity for New York. Show work clearly.

2c) Graph New York showing all intercepts in quadrant 1, label equilibrium price and quantity.

Explanation / Answer

1) ai) P = (60-Q)/2
1)aii) P = (Q+24)0/1.5
1)b) 60-2P = -24 +1.5P
=> 3.5 P = 84
=>P = 24$
So, Q = 60 - 2*24 = 12 units
1)c) Plot Q = 60 -2P and Q =-24+1.5P .
The meeting or point of intersection will be (Pequ,Qequ ) i.e. (24,12)
2)ai) P = (90-Q)/3
2)aii) P = (34-Q)/0.5
2)b) 90-3P = 35 +0.5P
=> P = 15.71$
=> Q = 35 + 0.5 * 15.71 = 42.5 units approx
2)c) Point of intersection will be (15.71, 42.5). Same as part (1)

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