Question

Producers will supply x units of a certain commodity to the market when the price is p=S(x)

dollars per unit, and consumers will demand (buy) x units when the price is p=D(x) dollars per unit,

where = () = 2 57 and = () = 385/+1

a) Find the equilibrium quantity and equilibrium price.

b) Draw the graph of demand and supply functions on the same coordinate systems.

c) Where does the supply curve cross the y-axis? Describe the economic significance of this point.