The quantity demanded of a DVD player is 3000 when the price is $485. For each decrease in price of $20, the quantity demanded increases by 250 units....
View the step-by-step solution to:

Question

The quantity demanded of a DVD player is 3000 when the price is $485. For each decrease in price of $20, the

quantity demanded increases by 250 units. The suppliers of the DVD player will not supply any units if the unit price is $300 or lower, but at a unit price of $525, they will make available 2500 units on the market. Assume the supply and demand functions are both linear.

How can I find the demand equation, supply equation and the market equilibrium ?

Top Answer

a) Demand equation: 25p +2q =18,125 b) supply... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question