Supply and Demand

[nycmath]

Precalculus
Michael Sullivan
Edition 10
Chapter 3, Section 3.1

[Guest]

Hi, it's Bob.

(a) Set supply equal to demand:
[tex]-2000 + 3000p = 10000 - 1000p \Rightarrow 4000p = 12000 \Rightarrow p = 3[/tex]
The equilibrium price is [tex]\$3[/tex], and the equilibrium quantity is [tex]S(3) = -2000 + 9000 = 7000[/tex] hot dogs.

(b) [tex]10000 - 1000p < -2000 + 3000p \Rightarrow 12000 < 4000p \Rightarrow p > 3[/tex]
Demand can't be negative, so [tex]p \le 10[/tex]. That gives [tex]3 < p \le 10[/tex].

(c) When there are more hot dogs than people want, sellers will lower the price until it gets back toward [tex]\$3[/tex].

[nycmath]

Hi, it's Bob.

(a) Set supply equal to demand:
[tex]-2000 + 3000p = 10000 - 1000p \Rightarrow 4000p = 12000 \Rightarrow p = 3[/tex]
The equilibrium price is [tex]\$3[/tex], and the equilibrium quantity is [tex]S(3) = -2000 + 9000 = 7000[/tex] hot dogs.

(b) [tex]10000 - 1000p < -2000 + 3000p \Rightarrow 12000 < 4000p \Rightarrow p > 3[/tex]
Demand can't be negative, so [tex]p \le 10[/tex]. That gives [tex]3 < p \le 10[/tex].

(c) When there are more hot dogs than people want, sellers will lower the price until it gets back toward [tex]\$3[/tex].

Great reply. Thanks.