Suppose that the market demand in a perfectly competitive industry is determined by the function:

Qd = 70-5p

and that the market supply function is:

Qs = 40 + 2.5p, where "p" is the price in monetary units:

a) Determine the market equilibrium price and quantity;

b) Build a table where you determine the quantity demanded and offered at the following prices: 9, 8, 7, 6, 5, 4, 3, 2 and 1;

c) Draw the demand and supply curves of the market.

• Pindyck, R.andD. Rubinfeld (2001), Microeconomics,5th edition, Pearson-Prentice Hall, Madrid. (Chapter8). Chapter8,"The Maximization of Profits and Competitive Supply"