Consider a perfectly competitive market where the demand for the good is given by Q=889-16p, where Q denotes the quantity demanded at price p. On the supply side, the industry supply function is given by Q=-12+4p. Find the equilibrium price, p*, and quantity, Q*, in this market. Then enter below the value of Q*, i.e., the value of the equilibrium quantity.

Consider a perfectly competitive market where the demand for the good is given by Q=889-16p, where Q denotes the quantity demanded at price p. On the supply side, the industry supply function is given by Q=-12+4p. Find the equilibrium price, p, and quantity, Q, in this market. Then enter below the value of Q*, i.e., the value of the equilibrium quantity.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 6MC

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