Calculate the equilibrium price and output combination

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The following relations describes the monthly demand and supply relations for a company:

Supply curve: Q = - 42,000,000 + 2,000P

Demand curve: Q = 20,500,000 - 500P

Where Q is quantity measured by the number of items dry cleaned per month and P is average price in dollars.

a) At what average price level would demand equal zero?

b) At what average price level would supply equal zero?

c) Calculate the equilibrium price/output combination?

Reference no: EM131424655

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