Finding equilibrium price and quantity

Reference no: EM1374333

Question1. Industry supply and demand are given by QD = 1000 - 2P and QS = 3P.

Determine the equilibrium price and quantity?

At a price of $100.00, what will the quantity be?

Question2. The demand equation for Widget Corporation has been estimated to be :
Qd= 20,000 + 10 i - 50P + 20 PC

Q=monthly # of widgets sold, I= average monthly income, P= price of widgets, and PC= average price of competing goods.

If next month's income is forecast to be 2,000, the price of competing goods is forcast to be $20, and the price of widgets will be set at $30, forcast sales. What will sales be if the price is dropped to $20 ?

Reference no: EM1374333

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