# Question: Consider the following demand schedule for bottles of water PRI

Consider the following demand schedule for bottles of water:

PRICE (P) Quantity Demanded by Consumers

(bottles / month)

$0.50 ................1,100

1.00...............1,050

1.50...............1,000

2.00...............950

2.50...............900

3.00...............850

3.50...............800

4.00...............750

4.50...............700

5.00...............650

The equations representing demand, inverse demand, supply and inverse supply are as follows:

Demand: Qd = - 100P + 1,150

Inverse Demand: P = - 0.01 Qd + 11.5

Supply: Qs = 400 P - 100

Inverse Supply: P = 0.0025 Qs + .25

Using this information, determine the equilibrium price and quantity for bottled water in this market. Explain what will happen in the market if price equals $4.00. What will happen if price equals $2.00?

PRICE (P) Quantity Demanded by Consumers

(bottles / month)

$0.50 ................1,100

1.00...............1,050

1.50...............1,000

2.00...............950

2.50...............900

3.00...............850

3.50...............800

4.00...............750

4.50...............700

5.00...............650

The equations representing demand, inverse demand, supply and inverse supply are as follows:

Demand: Qd = - 100P + 1,150

Inverse Demand: P = - 0.01 Qd + 11.5

Supply: Qs = 400 P - 100

Inverse Supply: P = 0.0025 Qs + .25

Using this information, determine the equilibrium price and quantity for bottled water in this market. Explain what will happen in the market if price equals $4.00. What will happen if price equals $2.00?

**View Solution:**## Answer to relevant Questions

Explain why economic growth accelerated so much for some countries, but not others, after the Industrial Revolution.First-semester GPAs for a random sample of 30 freshmen at a large university are given in the attached spreadsheet. Estimate the true mean GPA of the freshmen class with 99% confidence. A. 2.04 < Î¼ < 3.24B. 2.66 < Î¼ < ...Before the first Gulf War, Kuwait had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Kuwait's PPF before ...From the following payoff matrix, where the payoffs are the profits or losses of the two firms, determine (a) whether firm A has a dominant strategy, (b) whether firm B has a dominant strategy, and (c) the optimal strategy ...The cost of producing x units of a product is given by:C(x) = 800 + 120x â€“ 120ln(x), x â‰¥ 1.Find the minimum average cost.Minimum average cost = _____________________Post your question