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    Equilibrium Prices and Quantity

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    Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:

    P = $75 - 1.75QD
    (Demand)

    P = $2QS
    (Supply)

    where P is price per lawn mowed and Q is quantity of lawns mowed per day.

    A. Algebraically determine the equilibrium industry price/output combination.

    B. Confirm this by graphing industry demand and supply curves.

    © BrainMass Inc. brainmass.com December 24, 2021, 7:53 pm ad1c9bdddf
    https://brainmass.com/economics/demand-supply/equilibrium-prices-quantity-226758

    Solution Preview

    Please refer attached file for graphs.

    Solution:

    A.Algebraically determine the equilibrium industry price/output combination.

    P = $2QS ...

    Solution Summary

    The solution describes the steps for determining equilibrium price and quantity for lawn mowing services. Solution is determined algebraically and graphically.

    $2.49

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