Equilibrium level of output and local bookstore sales

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Reference no: EM1317040

Assume that the supply of a best-selling book at local book stores throughout the United States is a function price such that:

Q₅=-5+5P (Supply)

Where Q is the number of books sold (in thousands) and P is the book price. Given tha availability of this book on amazon.com for $20, demand is perfectly elastic at a price of $20.

Derive the book supply curve where price is expressed as a function of output. Calculate the equilibrium level of output and local bookstore sales revenue.

Reference no: EM1317040

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