My Notes 2/3 points | Previous Answers WaneFMAC7 1.3.502.XP You can sell 180 pet

Question

My Notes 2/3 points | Previous Answers WaneFMAC7 1.3.502.XP You can sell 180 pet chias per week if they are marked at $1 each, but only 170 each week if they are marked at $2/chia. Your chia supplier is prepared to sell you 10 chias each week if they are marked at $1/chia, and 100 each week if they are marked at $2 per chia. (a) Write down the associated linear demand and supply functions. demand function p)-10p 190 supply functionp)90p-80 (b) At what price should the chias be marked so that there is neither a surplus nor a shortage of chias? HINT [See Example 4.] $25 x Need Help? Read I Practice Another Version

Explanation / Answer

I see your answers for Part A are right.

Now, for Part B, neither surplus nor shortage means :

Demand = Supply

-10p+190=90p-80

270=100p

p = 270/100

p = 2.7

So, $2.7 is the answer.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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