Please see the attached file.
Consider a plastic hanger market. Suppose that the inverse demand for hangers is given by P=3-Q/16000
Calculate the following (see attached).
See the attached file for complete solution. The text here may not be copied exactly as some of the symbols / tables may not print. Thanks
For competitive market, the equilibrium price and quantity is achieved when
So we have 3-Q/16000=1 ...
Illustrates how to calculate the equilibrium price and quantity for perfect competition and monopoly and deadweight loss of monopoly.