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Solved: Supply and Demand Suppose that the supply function

Chapter 1, Problem 32A

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QUESTION:

 Problem 32A

Supply and Demand Suppose that the supply function for walnuts is p = S(q) = 0.25q + 3.6, where p is the price in dollars per pound and q is the quantity in bushels. Suppose also that the equilibrium price is $5.85, and the demand is 4 bushels when the price is $7.60. Find an equation for the demand function, assuming it is linear.

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QUESTION:

 Problem 32A

Supply and Demand Suppose that the supply function for walnuts is p = S(q) = 0.25q + 3.6, where p is the price in dollars per pound and q is the quantity in bushels. Suppose also that the equilibrium price is $5.85, and the demand is 4 bushels when the price is $7.60. Find an equation for the demand function, assuming it is linear.

ANSWER:

Solution:-

Step 1 of 3

Given that

We have to find an equation for the demand function, assuming it is linear.

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