Market demand surveys indicated that the demand for yogurt is P = 6-1/8QD and the supply...

 

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Market demand surveys indicated that the demand for yogurt is P = 6-1/8QD and the supply of yogurt is QS = -6+ 10P where P is the market price and QD is the industry demand and QS is the industry supply. a. Is there an equilibrium price and quantity for yogurt? If so, what are they? b. If the market price is $1.00, what is the market outcome? c. What do you expect to happen to the market price and quantity if the price is $4.00? d. What happens to the equilibrium price and quantity if, through new research, the supply curve is found to be QS = -42 +10(P) Market demand surveys indicated that the demand for yogurt is P = 6-1/8QD and the supply of yogurt is QS = -6+ 10P where P is the market price and QD is the industry demand and QS is the industry supply. a. Is there an equilibrium price and quantity for yogurt? If so, what are they? b. If the market price is $1.00, what is the market outcome? c. What do you expect to happen to the market price and quantity if the price is $4.00? d. What happens to the equilibrium price and quantity if, through new research, the supply curve is found to be QS = -42 +10(P)

Answer rating: 100% (QA)

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