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# You can sell 70 pet chias per week if they are marked at \$1 each, but only 20 each week if they are marked at \$2/chia.

You can sell 70 pet chias per week if they are marked at \$1 each, but only 20 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 60 each week if they are marked at \$2 per chia.

(a) Write down the associated linear demand and supply functions.

demand function     q(p) =

supply function     q(p) =

(b) At what price should the chias be marked so that there is neither a surplus nor a shortage of chias?

\$

(a) The slope of the demand function is given by: demand function (70 -20)/(1 -2) = 50/-1 = -50 thus, the... View the full answer

(a) T he demand function is q(p) = 120-50p... View the full answer

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