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A small town with a microbrewery has a demand for local beer and supply demonstrated below. P Qd Qs $40 10 20 38 12 18

A small town with a microbrewery has a demand for local beer and supply demonstrated below.


P

Qd

Qs

$40

10

20

38

12

18

35

15

15

32

18

12

30

20

10

28

22

8

(1) As September ends the brewery considers having an October fest Blowout and plans to ramp up production to its maximum and brew 20 cases that week. What will be the cost per case.

(2)The town council decides to sponsor the October fest. How many dollars would the town have to contribute to each case of beer to get them all purchased?

(a) After October fest, equilibrium returns to $_ and Q_

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