# Equilibrium Price and Market Demand of Frozen Yogurt

The Market Demand for Joy's Frozen Yogurt is given as:

Qd=-100P+1.5Phd-5Psd+20A+15Pop

Where Qd= Annual demand for frozen yogurt

Phd= Price of hot dogs

Psd= Price of soft drinks

A= Advertising expenditures

Pop= Percentage of the population

Considering the demand equation of QD=-100p+700,and assuming that the supply equation is given as Qs=-100+100P,how do you find the equilibrium price and quantity? If the producer is given a $2 subsidy, how do you find the new equilibrium price and quantity?

© BrainMass Inc. brainmass.com October 10, 2019, 12:51 am ad1c9bdddfhttps://brainmass.com/economics/demand-supply/equilibrium-price-market-demand-frozen-yogurt-310725

#### Solution Preview

At equilibrium the quantity demanded is equal to the quantity supplied. Therefore:

Qd = -100 P + ...

#### Solution Summary

This solution calculates the equilibrium price based on supply and demand curves. It also calculates the revised equilibrium based on a subsidy.

$2.19