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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 Summary

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

Solution Preview

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

0 = 3000 - 10P

P = 3000/10 = ...

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