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7 January, 07:54

Suppose that the demand and price for a wrist watch are related by the following equation:

p = D (q) = 28 - 2.25

where p is the price (in dollars) and q is the quantity demanded (in hundreds).

a. Find the price when the demand is 0 watches. b. Find the price when the demand is 400 watches.

c. Find the quantity supplied at a price of $10.

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Answers (1)
  1. 7 January, 10:17
    0
    a. $28

    b. $19

    c. 800 watches

    Explanation:

    The equation is

    p = D (q) = 28 - 2.25

    The equation of the demand would be

    P = 28 - 2.25q

    a. The price would be

    = $28 - 2.25 * 0

    = $28 - 0

    = $28

    b. The price would be

    = $28 - 2.25 * 4

    = $28 - 9

    = $19

    The quantity demanded is come in hundreds so we take only 4

    c. The quantity woul dbe

    $10 = $28 - 2.25q

    $10 - $28 = - $2.25q

    -$18 = - $2.25q

    So q would be

    = 800 watches
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