Question #100107
Suppose the market of carpets is competitive. The demand for and the supply of carpets in the market have been estimated as follows: Demand: Qd = 6500 – 100P Supply: Qs = 1200P
A typical firm producing carpets has a total cost function of C = 100 +
1
Expert's answer
2019-12-09T09:54:47-0500

 Given,Qd=6500100P,Qd= 6500- 100P, Qs=1200PQs= 1200P

 At equilibrium Qd=QsQd=Qs

Therefore, 6500-100P= 1200P.

1300P= 6500

P= 6500/1300= 5

Qs= 1200P = 1200*5 = 6000

Qd =6500-100*5 = 6000


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