the following relations describe monthly demand and supply for a computer suppor

Question

the following relations describe monthly demand and supply for a computer support service catering to small businesses. QD=3;000-10P QS=-1,000+10P where is Q is the number of businesses that need services and P is the monthly fee, in dollars, a. At what average monthly fee would demand equal zero b.at what average monthly fee would supply equal zero c.plot the supply and demand curves d.what is the equilibrium price/output level? e.suppose demand increases and leads to a new demand curve: Qd=3,500-10P what is the effect on supply? what are the new equilibrium P and Q?

Explanation / Answer

a)QD=3000-10P QS=-1000+10P P = 300 b)QS = 0 -1000 + 10P = 0 P = 100 d)equilibrium price QD = QS =>3000-10P = -1000+10P P = 200 Output level = QD = 1000 e)Supply will come down 3500-10P = -1000+10P P = 225 Q = 3500-(10*225) = 1250

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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