Stacey Springer - Week 5 Assignment 2

Stacey Springer - Week 5 Assignment 2 - A. Algebraically...

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Stacey Springer Week 5, Assignment 2 11/06/2011 Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are: Q S = 2P - 20 (Supply) Q D = 80 - 2P (Demand) - Where Q is thousands of hours of floor reconditioning per month, and P is the price per hour.
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Unformatted text preview: A. Algebraically determine the market equilibrium price/output combination. B. Use a graph to confirm your answer. Answer: The equilibrium price is 25. The equilibrium quality would be the quantity supplied/demanded at the given price. You should substitute 25 for value P at each equation....
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