Suppose it is known that producers will supply x units of a certain commodity to the market when the price is p = S(x) dollars per unit and that the same number of units will be demanded (bought) by consumers when the price is p = D(x) dollars per unit, where

for constants A and B. It is also known that no units will be supplied until the unit price is $3 and that market equilibrium occurs when x = 7 units.

a. Use this information to find A and B and the equilibrium unit price.

b. Sketch the supply and demand curves on the same graph.

c. What is the difference between the supply price and the demand price when 5 units are produced? When 10 units are produced?

Transcribed Image Text:

S(x) = x² + A and D(x) = Bx + 59 D(x)