Equilibrium Price: Cell Phones Worldwide annual sales of a certain product were approximately −5p + 1,600 million products when the wholesale price was $p.

(a) If manufacturers are prepared to supply q = 12p − 800 million products per year at a wholesale price of $p.

what would be the equilibrium price? (Round your answer to the nearest cent.) 

(b) The actual wholesale price was projected to be $60 in the fourth quarter of 2008. Estimate the projected shortage or surplus at that price. There is an estimated shortage of _______________ million products.

Answer rating: 100% (QA)

a To find the equilibrium price we need to set the quantity demanded equal to ... View the full answer