The domestic demand and supply for sugar are Q^d = 60,000 − 400P and Q^SD = 20,000 + 500P.The foreign supply is Q^SF = 20,000 + 100P.What is the domestic quantity supplied at the domestic market price?

Question

Quizplus · Accepted Answer

To find the domestic quantity supplied at the domestic market price, we should set the domestic demand equal to the domestic supply: Q^d = Q^SD 60,000 − 400P = 20,000 + 500P Solving for P, we get P = $50. Plugging this value back into either the domestic supply or demand equation gives us the quantity supplied: Q^d = 60,000 − 400($50) = 40,000 Therefore, the domestic quantity supplied is 40,000. Thus, the correct answer is D) 30,000.

The Domestic Demand and Supply for Sugar Are Qd =

The Domestic Demand and Supply for Sugar Are Q^d =