Equilibrium Price: Cell PhonesWorldwide annual sales of a certain product were approximately8p+ 1,600

million products when the wholesale price was $p.

(a)

If manufacturers are prepared to supplyq=18p800

million products per year at a wholesale price of $p, what would be the equilibrium price? (Round your answer to the nearest cent.)

$

(b)

The actual wholesale price was projected to be $65in the fourth quarter of 2008. Estimate the projected shortage or surplus at that price.

There is an estimated

surplus

shortage

ofmillion products.