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    Finite Math: Supply and Demand and Cost Function

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    2) Supply and Demand. Let the supply and demand functions for sugar be given by

    p = S(q) = 1.4q - .6 and
    p = D(q) = -2q + 3.2,

    where p is the price per pound and q in the quantity in thousands of pounds.

    a. Graph these on the same axes.
    b. Find the equilibrium quantity and the equilibrium price.
    3) Publishing Cost. Enrique Gonzales owns a small publishing house specializing in Latin American poetry. His fixed cost to produce a typical poetry volume is $525, and his total cost to produce 1000 copies of the book is $2675. His books sell for $4.95 each.

    a. Find the linear cost function for Enrique's book production.
    b. How many poetry books must he produce and sell in order to break even?

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    Solution Preview

    a)refer to the attachment
    b) from the system:
    p = 1.4q - 0.6 (1)
    p = -2q + 3.2 (2)
    (1)-(2): 0 = 3.4q-3.8 or q*=1.12 (thousand ...

    Solution Summary

    A Supply and Demand and Cost Function are solved.