Question: The demand function for a product M is known to be linear of the form p= a + bq. When price is sh. 54, the

The demand function for a product M is known to be linear of the form p= a + bq. When price is sh. 54, the quantity demanded will be 9 units and the price is reduced to sh. 24, quantity demanded will increase to 19 units.

The supply function for the same product M is also known to be linear of the form p= a + bq. If the price is sh. 5, quantity supplied will be 10 units and when price is sh. 30, quantity supplied will be 35 units.

Required

(i) Find the equations for the demand and supply functions(6 marks)

(ii) Find the equilibrium quantity and price for a market having the respective demand and supply functions.(4 marks)

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