Supply and demand curves

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Reference no: EM132235598

The market for cookies is represented by the following supply and demand conditions:QD= 1,000 -200PandQS= 400P-200, whereP is price per box of cookies and Q measures boxes per day.

I already have equilibrium price and demand. However, the following questions asks: Suppose the government places a quota of 500 boxes per day on cookies. Solve for the equilibrium price and quantity and then use supply and demand curves to illustrate your answer.

How does one get the answer of 2.5? Please show work

Reference no: EM132235598

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