The producer of a cosmetic product needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demand function of the cosmetic product is given as QD = 40 - 2P, while the supply function of the cosmetic product is given as QS = 2P where P is price, QD is quantity demanded, and QS is quantity supplied.

Task: Solve the following:

The demand function is given as QD = 40 - 2P.
The supply function is given as QS = 2P.

Calculate the equilibrium price and quantity. Please provide a step-by-step calculation to show how you arrived at the answer.

Solution Summary

Solution describes the steps for calculating equilibrium price and quantity for costmetic products.

If the supply/demand for a product are given by:
Supply: p = 1/6q^2; demand p = -1/6q^2 +36
Where p is the priceand q is quantity.
What is the equilibriumprice?

Given the following demandand supply equations:
Demand: Q=100 - 5P
Supply: Q=20P
1. What is the equilibriumprice?
2. What is the equilibriumquantity?
3. Using Excel andprices in the range of $1 to $10, generate the demandand supply schedules for the initial equations.
4. Use Excel to plot a graph of your

Price per gallon $2.00 2.25 2.50 2.75 3.00 3.25 3.50
Quantity demanded 26 25 24 23 22 21 20
Quantity supplied 16 20 24 28 32 36 40
(a) What is the equilibrium?
(b) If supply at every price is reduced by 10 gallons, what will the new equilibriumprice be?
(

Suppose the demand for guitars in State College is given by Qd = 9000 - 12P where Qd is the quantity demanded, and P is the price of guitars. Also, suppose the supply of guitars is given by Qs = 9P - 3852, where Qs is the quantity supplied of guitars.
a)Calculate the equilibriumprice of guitars and the equilibriumquantity

The majority of the world's diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follows:
PriceQuantity
$6,000 5,500
$5,000 6,500
$4,000 7,500
$3,000 8,500

The market demandand supply functions of copper are as follows:
QD = 10 -50PC + 0.3I + 1.5TC + 0.5E where:
QD = quantity demanded of copper (millions of pounds)
PC = price of copper ($ per pound)
I = consumer income index
TC = telecom index
E = expectation index
QS= -86 + 90PC â?" 1.5W + 0.5T + 0.4N where:
QS = q