Question: Suppose that the demand and price for a certain model of a youth wristwatch are related by p = D(q) = 16 - 1.25q, where

Suppose that the demand and price for a certain model of a youth wristwatch are related by p = D(q) = 16 - 1.25q, where p is the price (in dollars) and q is the quantity demanded (in hundreds). Find the price at each level of demand.

(a) 0 watches

(b) 400 watches

(c) 800 watches

Find the quantity demanded for the watch at each price.

(d) $8

(e) $10

(f) $12

(g) Graph p = 16 - 1.25q.

Suppose the price and supply of the watch are related by p = S(q) = 0.75q, where p is the price (in dollars) and q is the quantity supplied (in hundreds) of watches. Find the quantity supplied at each price.

(h) $0

(i) $10

(j) $20

(k) Graph p = 0.75q on the same axis used for part (g).

(l) Find the equilibrium quantity and the equilibrium price.

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