The quantity demanded x each month of Russo Espresso Makers is 250 when the unit

Question

The quantity demanded x each month of Russo Espresso Makers is 250 when the unit price p is $170; the quantity demanded each month is 500 when the unit price is $160. The suppliers will market 750 espresso makers if the unit price is $90. At a unit price of $120, they are willing to market 3000 units. Both the demand and supply equations are known to be linear. (a) Find the demand equation. (b) Find the supply equation (c) Find the equilibrium quantity and the equilibrium price equilibrium quantity equilibrium price units

Explanation / Answer

a.

Demand equation = 4500-25P

b.

-6000+75P

c.

Equating both the exuations

4500-25P = -6000+75P

100P= 10500

P= $105

Q= 1875

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