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    Supply and demand - Equilibrium Price and Quantity

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    The following relation describes the monthly demand and supply for a computer support service, catering to small businesses:

    Qd = 3,000 - 10P
    Qs = -1000 + 10P

    2a) At what average monthly fee would demand equal zero?

    2b) At what average monthly fee would supply equal zero?

    2c) What are the equilibrium price and equilibrium quantity?

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    Solution Preview

    (2a) Plug in Qd = 0 and solve for P

    0 = 3000 - 10P

    P = 3000/10 = ...

    Solution Summary

    The supply and demand and equilibrium price and quantity is examined. A complete, neat and step-by-step solution is provided.