The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the
Question:
The industry demand curve is given by:
Qd = 998 - 5Pw + 4 Y - 6Pg And the industry supply curve is given by Qs = +15Pw - 3 Wage.
Where Pw represents the price of widgets, Pg is the price of gasoline, Y is disposable personal income in Springfield, and Wage is wages paid to workers in widget factories. Currently, Y= $10, Pg = $3, and Wage = $20.
What is the market equilibrium price?
A 108
B. 210
C. 48
D. 54
C105
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Step by Step Answer:
Y 10 Pg 3 and Wage 20 Substituting this value in demand function Qd 998 5Pw 4 Y 6Pg Qd 9985Pw 41...View the full answer
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