Equilibrium Price: Las Vegas Monorail Service The demand for monorail serv...

Equilibrium Price: Las Vegas Monorail Service The demand for monorail service in Las Vegas could be approximated by

thousand rides per day,

where p was the fare the Las Vegas Monorail Company charges in dollars.29 Assume the company was prepared to provide service for

q = 2.5p + 15.5 thousand rides per day at a fare of $p.

a. Graph the demand and supply equations, and use your graph to estimate the equilibrium price (to the nearest 50¢).

b. Estimate, to the nearest 10 rides, the shortage or surplus of monorail service at the December 2005 fare of $5 per ride.