Suppose that the demand and price for a certain model of a youth wristwatch are related by
Question:
Suppose that the demand and price for a certain model of a youth wristwatch are related by p = D(q) = 16 - 1.25q, where p is the price (in dollars) and q is the quantity demanded (in hundreds). Find the price at each level of demand.
(a) 0 watches
(b) 400 watches
(c) 800 watches
Find the quantity demanded for the watch at each price.
(d) $8
(e) $10
(f) $12
(g) Graph p = 16 - 1.25q.
Suppose the price and supply of the watch are related by p = S(q) = 0.75q, where p is the price (in dollars) and q is the quantity supplied (in hundreds) of watches. Find the quantity supplied at each price.
(h) $0
(i) $10
(j) $20
(k) Graph p = 0.75q on the same axis used for part (g).
(l) Find the equilibrium quantity and the equilibrium price.
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