Demand for glass bottles is given by Q_D = -2P + 24 and supply of glass bottles is given by Q_S = 6P, where Q_D is the quantity of glass bottles demanded per month (in 1,000s of cases), Q_S 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 Q_S = Q_D 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?

Answer rating: 100% (QA)

1To find the marketclearing price set the demand QD equal to the supply Q... View the full answer