Chapter 1.2, Problem 28E

Supply and Demand Suppose that the demand and price for strawberries are related by

$p=D(q)=5-0.25q,$

  where p is the price (in dollars) and q is the quantity demanded (in hundreds of quarts). Find the price at each level of demand.

1. (a) 0 quarts
2. (b) 400 quarts
3. (c) 840 quarts

  Find the quantity demanded for the strawberries at each price.

1. (d) $4.50
2. (e) $3.25
3. (f) $2.40
4. (g) Graph p = 5 − 0.25q.

  Suppose the price and supply of strawberries are related by

$p=S(q)=0.25q,$

  where p is the price (in dollars) and q is the quantity supplied (in hundreds of quarts) of strawberries. Find the quantity supplied at each price.

1. (h) $0
2. (i) $2
3. (j) $4.50
4. (k) Graph p = 0.75q on the same axis used for part (g).
5. (l) Find the equilibrium quantity and the equilibrium price.