Demand for glass bottles is given by Q D = -2P + 24 and supply of glass
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Question:
Demand for glass bottles is given by QD = -2P + 24 and supply of glass bottles is given by QS = 6P, where QD is the quantity of glass bottles demanded per month (in 1,000s of cases), QS is the quantity of glass bottles supplied by the industry per month (in 1,000s of cases), and P is the price per case of glass bottles in dollars. The value of P for which QS = QD is called the market-clearing price or equilibrium price.
- With these equations, estimate the market clearing price.
- What will be the market-clearing quantity that will be sold at this price?
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