Table 4-7

-Refer to Table 4-7.The equations above describe the demand and supply for Pauline's Pickled Pomegranates.What are the equilibrium price and quantity (in thousands)for Pauline's Pickled Pomegranates?

Question

Table 4-7
 
-Refer to Table 4-7.The equations above describe the demand and supply for Pauline's Pickled Pomegranates.What are the equilibrium price and quantity (in thousands)for Pauline's Pickled Pomegranates?

Quizplus · Accepted Answer

To find the equilibrium price and quantity, we need to set the demand and supply equations equal to each other and solve for Q (quantity) and P (price).
4 - 0.05P = 0.01P + 1
0.06P = 3
P = 50
Q = 1000(4 - 0.05(50)) = 15000
Therefore, the equilibrium price and quantity are $30 and 15 thousand, respectively. The answer is C.

Table 4-7 -Refer to Table 4-7.The Equations Above Describe the Demand and Describe