The demand function for x is D(p) = 65 - 2p and the supply function is S(p) = 20 + p. The price that should be set to restrict the quantity supplied to 30 units is closest to

Question

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We need to find the price that will make the quantity supplied equal to 30 units.

Setting the quantity demanded equal to the quantity supplied, we get:

65 - 2p = 20 + p

Solving for p, we get:

3p = 45

p = 15

However, this is the price that brings equilibrium in the market, i.e. the price at which demand equals supply.

To restrict the quantity supplied to 30 units, we need to set a price that is higher than the equilibrium price.

At a price of $10, the quantity supplied is:

S(10) = 20 + 10 = 30

This is the price that should be set to restrict the quantity supplied to 30 units.

The Demand Function for X Is D(p) = 65 -