The Market Demand for Joy's Frozen Yogurt is given as:
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 ad1c9bdddf
At equilibrium the quantity demanded is equal to the quantity supplied. Therefore:
Qd = -100 P + ...
This solution calculates the equilibrium price based on supply and demand curves. It also calculates the revised equilibrium based on a subsidy.