Question

i keep getting this ome wromg how do i do it

The university's food court is a competitive market for lunch combos. The inverse demand for lunch combos is p = 10 - 1o where q is the number of combos demanded and p is the market price per combo. The inverse supply of lunch combosis given by p= -2. 2nd attempt Part 1 (2 points) See Hint The equilibrium quantity of lunch combos is per combo. 70 , and the equilibrium price is $ 25

Answer 1

Answer: Inverse demand function : p = 10-q/10 and inverse supply function : p = (q/5)-2

1. At equilibrium, 10-q/10 = (q/5)-2 => 100-q = 2(q-10)

=> 3q = 120 => q = 40 and p = 10-(40/10) = $6

2. With price ceiling of $4, quantity demanded = 100-4*10 = 60

quantity supplied = 6*5 = 30

Since quantity demanded is more than the quantity supplied, there will be shortage of 60-30= 30 units