1.

The city of Chambana has a large number of video poker arcades. The demand by patrons for the games (in thousands per week) is Q_d = 120 - 3P and the supply is Q_s = 2P - 30 where P is the price in cents charged to play a game. (Note: Please be careful and consistent with your units of measurement.)

• What is the equilibrium number (quantity) of games played?
• What is the equilibrium price?
• Draw a diagram depicting the equilibrium in this market.