Question

Question 19 1 pts The market for soccer balls is characterized by the following supply and demand curves. What is the equilibrium price (P*)? D-100-2P Qs-2P (P: $/ball ; Q: balls) 1. P $20 2. P*-$25 3. P* $50 4. P* $100 P $20 P* $25 P* $50 P*-$100 Question 20 1 pts The market for solar heaters in Sugar Lake City is characterized by the following equations. What is the equilibrium price (P") and the equilibrium quantity (Q") for this market? QD 120-P (P: $/heater; Q: heaters/week) 1. P $30; Q-60 2. P*-$40; Q'-80 3. P*-$60;Q-120 P $30 Q 60 P-$40;Q-80 P-$60 Q-120 P*-$120;Q-0

Answer 1

Demand: 100 - 2p supply: 2p equilibrium: Q_D = Q_s or, 100 - 2p = 2p or, 4p = 100 therefore p^* = 25 (2) Demand: Q_D = 120 - p supply: Q_s = 2p equilibrium: Q_D = Q_s or, 120 - p = p or, 2p = 120 therefore p = 60 therefore Q = 120 } (3)