if demand in the United States is given by Q₁ = 7,200 - 300p₁, where p₁ is the price in the United States, and if the demand in England is given by 3,600 - 200p₂, where p₂ is the price in England, then the difference between the price charged in England and the price charged in the United States will be A)$3. B)$6. C)$0. D)$13. E)$9.

Question

Quizplus · Accepted Answer

To find the difference in price, set the quantities equal: 7,200 - 300p₁ = 3,600 - 200p₂. Solving for p₁ and p₂ gives p₁ = 12 and p₂ = 9. The difference is 12 - 9 = 3.

If Demand in the United States Is Given by Q1

If Demand in the United States Is Given by Q₁