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Vaselesa [24]
3 years ago
6

The demand for a certain company's e-reader can be approximated byq =720p− 1 million units per year (60 ≤ p ≤ 400),where p is th

e price charged by the company. Assume that the company is prepared to supplyq = 0.018p − 1 million units per year (60 ≤ p ≤ 400)at a price of $p per unit.Calculate the equilibrium price and equilibrium demand.equilibrium price$equilibrium demand million e-readers per year.
Mathematics
1 answer:
LenKa [72]3 years ago
8 0

Answer:

Equilibrium price P = 200 dollars

equilibrium demand of million e-readers per yer = 2.6 mi/yr

Step-by-step explanation:

Given that;

q = 720/p - 1 million units per year { 60 ≤ p ≤ 400 }

supply q = 0.018p − 1 million units per year (60 ≤ p ≤ 400)

we substitute

720/p - 1  = 0.018p − 1

720/p = 0.018p

720 = 0.018p^2

p^2 = 720/0.018 = 40000

p = sqrt(40000)

p = 200

substitute value of p

q = 0.018(200) − 1

q = 3.6 - 1 = 2.6

Therefore Equilibrium price P = 200 dollars

equilibrium demand of million e-readers per yer = 2.6 mi/yr

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