Question

Suppose the demand function (D) for golf clubs is: Q-240-0.50P where P is the price paid by consumers in dollars per club and Q is the quantity demanded in thousands. Suppose the supply curve (S) for golf clubs is estimated to be: Q-1.00P. Calculate the equilibrium price for golf clubs and the equilibrium quantity sold. The equilibrium price is $ 160 per club (Enter your response as an integer.), and the equilibrium quantity is 160 thousand clubs (Enter your response as an integer.) Suppose instead that golf club producers agree to charge a price of $140 per club. This would result in a ofthousand clubs (Enter your response as an integer)

Answer 1

Solaction Given at Surrose the demand untion CD)3dí canc S uhesne these Ccsect, atke he seen in --) From-TRis point of vies avab equatee demand and St

2.40-1.00P 1.00 P 240 2 P tKis vale nto any one so to get tfe efuOibrlun quantity at His「rice . of tRe above fune-trons 2 40-1 0O p 63 =240-1400( [20) 12.0 eque 'brium Price and quant . same. Nouo suppose TRe price of golf cluks ncrease -to 120 o $,140. Qibstiute tRix value o any otte Funetions ahove Like we already 2.40-1.00(140)

hus, quarty demanded decreases Jrom 120 qute und estandable , snce-te supply Cuo)Ve moved to-HeJett bud demand geroaned Constant ths tncreasiq te price ut decreasing fe quantity