Supply and Demand Suppose that the demand and price for

QUESTION:

Problem 28A

Supply and Demand Suppose that the demand and price for strawberries are related by

p = D(q) = 5 − 0.25q

where p is the price (in dollars) and q is the quantity demanded (in hundreds of quarts). Find the price at each level of demand.

a. 0 quarts

b. 400 quarts

c. 840 quarts

Find the quantity demanded for the strawberries at each price.

d. $4.50

e. $3.25

f. $2.40

g. Graph p = 5 − 0.25q.

Suppose the price and supply of strawberries are related by

p = S(q) = 0.25q,

where p is the price (in dollars) and q is the quantity supplied (in hundreds of quarts) of strawberries. Find the quantity supplied at each price.

h. $0

i. $2

j. $4.50

k. Graph p = 0.75q on the same axis used for part g.

l. Find the equilibrium quantity and the equilibrium price.