1. Industry supply and demand are given by QD = 1000 - 2P and QS = 3P.
What is the equilibrium price and quantity?
At a price of $100.00, what will the quantity be?
2. The demand equation for the Widget Company has been estimated to be :
Qd= 20,000 + 10 i - 50P + 20 PC
Q=monthly # of widgets sold, I= average monthly income, P= price of widgets, and PC= average price of competing goods.
If next month's income is forecast to be 2,000, the price of competing goods is forcast to be $20, and the price of widgets will be set at $30, forcast sales. What will sales be if the price is dropped to $20 ?
Complete, Neat and Step-by-step Solutions are provided in the attached file.