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The answer to Finding equilibrium price and quantity
Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are:
Supply: QS = 2P - 20Demand: QD = 80 - 2P, where
Q = thousands of hours of floor reconditioning per monthP = the price per hour.
A. Algebraically determine the market equilibrium price/output combination.B. Use a graph to confirm your answer.
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