Suppose that we are in a condition of "stuck" prices so that the price of nails will not go above or below $2/kg. Further suppose that nail factories have been built on a business plan designed to deliver 6,000 kg/week.
Required
Given P is in $/kg and Q is in thousands of kg/week, determine what happens to inventoryand how many nails will be sold in a market in which demand (which includes a modest amount of inventory) is characterized by: P = 4 - 0.5Q