Carole Juarez
2022-02-24
mtakadamu9i5
Beginner2022-02-25Added 8 answers
The honey supply function is
p=S(q)=0.2q+2.2
Where,
p is the cost for an 8-oz container in dollars, and q is the amount in barrels.
$4.40 is the equilibrium price.
When the price is $5.80, there is a demand for three barrels. Suppose the demand function has the following form: p=D(q)=aq+b
The supply function is provided as p =S(q)=0.2q +2.2.
$4.40 is the specified equilibrium price. The equilibrium quantity is hence
0.2q+2.2=4.40
0.2q=4.40-2.2
0.2q=2.2
q=2.2/0.2
q=11
When we enter q=11 into the demand function, the result is 4.40=11a+b. (1) If the price is $5.80 and the demand is three barrels, then $5.80=3a+b. (2) The system of linear equations is made up of equations (1) and (2).
Add equation (2) less than (1),
4.40 = 11a + b
-5.80 = 3a + b
-1.40 = 7a
a = -1.40/7
a = -0.2
Put a=-0.2 in equation (1)
4.40 = 11(-0.2) + b
b=4.40-11(-0.2)
b=6.6
The demand function is therefore p=D(q)=-0.2q+6.6.
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