An important application of systems of equations arises in connection with supply and demand. As the price
Question:
An important application of systems of equations arises in connection with supply and demand. As the price of a product increases, the demand for that product decreases. However, at higher prices, suppliers are willing to produce greater quantities of the product. The price at which supply and demand are equal is called the equilibrium price. The quantity supplied and demanded at that price is called the equilibrium quantity. Exercises 65–66 involve supply and demand.
The table shows the price of a package of cookies. For each price, the table lists the number of packages that consumers are willing to buy and the number of packages that bakers are willing to supply.
The data in the table can be described by the following demand and supply models:
a. Solve the system and find the equilibrium quantity and the equilibrium price for a package of cookies.
b. Use your answer from part (a) to complete this statement: If cookies are sold for________ per package, there will be a demand for________ million packages per week and bakers will supply_________ million packages per week.
Step by Step Answer:
a b If cookies are sold for 050 per package there will be a demand for 110 million ...View the full answer
