Week Five Assignment 2
Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to office maintenance firms, and both technology and labor requirements are very basic.
Supply and demand conditions in this perfectly competitive service market in New York are:
QS = 2P - 20 (Supply)
QD = 80 - 2P (Demand)
*Where Q is thousands of hours of floor reconditioning per month, and P is the price per hour.
A. Algebraically determine the market equilibrium price/output combination.
2P - 20 = 80 - 2P
4P = 100
P = 25
2. QS = 2P - 20
QS = 2(25) - 20
QS = 50 - 20
QS = 30
B. Use a graph to confirm your answer using excel. Use prices 10,15, 20, 25, 30, 35, 40 . Calculate the corresponding S and D schedules then graph.
Hint: 2-The figure below shows a firm in a perfectly competitive market:
I have solved part A just need help with entering numbers in Excel.
A Complete, Neat and Step-by-step Solution is provided in the attached Excel file.