retail chain will buy 900 cordless phones if the price is $30 each and 800 if the price is $40. A wholesaler will supply 350 phones at $40 each and 1400 at $70 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means

retail chain will buy 900 cordless phones if the price is $30 each and 800 if the price is $40. A wholesaler will supply 350 phones at $40 each and 1400 at $70 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 9SQP

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Question

A retail chain will buy

900

cordless phones if the price is

$30

each and

800

if the price is

$40.

A wholesaler will supply

350

phones at

$40

each and

1400

$70

each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means.

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