Question

The quantity demanded each month of russo Espresso Makers is 250 when the unit price is $140; the quantity demanded each month is 1000 when th e unit price is $110. the suppliers will market 750 expresso makers if the unit price is $60 or higher. At a unit price of $80 they are willing to market 2250 units Both the demand and supply equations are known to be liniear.
A: Find the demand equation.
B: Find the supply equation.
C: Find the equilibrium quantity and the equilibrium price.

Answer 1

demand:
(d-250)/(p-140) = (1000-250)/(110-140)
d-250 = -25(p-140)
d = -25p + 3750

supply:
(s-750)/(p-60) = (2250-750)/(80-60)
s-750 = 75(p-60)
s = 75p - 3750

equilibrium:
-25p + 3750 = 75p - 3750
100p = 7500
p = 75
s = d = 1875