Question: The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The

The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). 
The industry demand curve is given by: 
Qd = 998 - 5Pw + 4 Y - 6Pg And the industry supply curve is given by Qs = +15Pw - 3 Wage.
Where Pw represents the price of widgets, Pg is the price of gasoline, Y is disposable personal income in Springfield, and Wage is wages paid to workers in widget factories. Currently, Y= $10, Pg = $3, and Wage = $20.
What is the market equilibrium price?
A 108
B. 210
C. 48
D. 54
C105

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Y 10 Pg 3 and Wage 20 Substituting this value indemand function Qd 998 5Pw 4 Y 6Pg Qd 9985Pw 41... View full answer

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