Question
The weekly demand for mini pizzas in a small town is given by Q D = 2250 - 200P - 200P R - 0.5M where
The weekly demand for mini pizzas in a small town is given by QD= 2250 - 200P - 200PR- 0.5M where QDis the quantity of mini pizzas demanded per week, P is the price of a mini pizza, PRis the price of a related product, and M is the average monthly income of consumers.
The weekly supply of mini pizzas is given by QS= - 400 + 200P where QSis the quantity of mini pizzas supplied per week.
Currently, the price of the related product, PRis $2 and the average consumer income, M is $100.
What is the equilibrium price?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
