A shipping company moves cars from Texas to Maryland with the demand curve Q = 5000 - 100P and ships motorcycles back from Maryland to Texas with the demand curve Q = 1000 100P. The cost of round trip is $20. Find the - equilibrium price and quantity graphically. Is the $20 price the round-trip price? If not what is the best price for the round-trip?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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. A shipping company moves cars from Texas to Maryland with the demand curve
Q = 5000 100P and ships motorcycles back from Maryland to Texas with the
demand curve Q = 1000 100P. The cost of round trip is $20. Find the
equilibrium price and quantity graphically. Is the $20 price the round-trip price? If
not what is the best price for the round-trip?
Transcribed Image Text:. A shipping company moves cars from Texas to Maryland with the demand curve Q = 5000 100P and ships motorcycles back from Maryland to Texas with the demand curve Q = 1000 100P. The cost of round trip is $20. Find the equilibrium price and quantity graphically. Is the $20 price the round-trip price? If not what is the best price for the round-trip?
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