1.The price elasticity of demand for computers is -0.75.The price elasticity of supply for computers is 3.25.The price of a new computer is $500.Last year 50 million computers were bought by private citizens in America.The federal government is concerned that low-income students do not have the same access to computers as other students.To solve the problem, the government has decided to purchase 1 million computers per year and distribute them to low-income households.

a.What will be the resulting equilibrium price of a computer? (5)