The following relations describe monthly demand and supply relations for dry cleaning services in the metropolitan area:

Question:

QD = 500,000 - 50,000P(Demand)

QS = -100,000 + 100,000P (Supply)

Where Q is quantity measured by the number of items dry cleaned per month and P is average price in dollars.

A. At what average price level would demand equal zero?

B. At what average price level would supply equal zero?

C. Calculate the equilibrium price/output combination.

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Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

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Question Posted: Feb 13, 2015 09:48 AM

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The following relations describe monthly demand and supply relations for dry cleaning services in the metropolitan area:

Question:

Step by Step Answer:

A From the demand relation note that demand equals zero when Q ...View the full answer

Managerial Economics

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