A tire manufacturer estimates that q (thousand) radial tires will be purchased (demanded) by wholesalers when the price is shown as follows ($ per tire) P = D(q) = -0. 1q² + 90 The same number of tires will be supplied when the price is shown below ($ per tire) P = S(q) = 0.2q² + q + 50 a. Find the market equilibrium price (where quantity supply equals demand) and the quantity supplied and demanded at that price. b. Determine the consumers' and producers' surplus at the equilibrium price.

A tire manufacturer estimates that q (thousand) radial tires will be purchased (demanded) by wholesalers when the price is shown as follows ($ per tire) P = D(q) = -0. 1q² + 90 The same number of tires will be supplied when the price is shown below ($ per tire) P = S(q) = 0.2q² + q + 50 a. Find the market equilibrium price (where quantity supply equals demand) and the quantity supplied and demanded at that price. b. Determine the consumers' and producers' surplus at the equilibrium price.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section5.7: Application 7: Why Do Colleges Use Gpa,s Actss, And Sats, For Purposes Of Admission?

Problem 2ST

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