The following relations describe monthly demand and supply for a computer support service catering to small businesses. Q D = 3,000 - 10P Q S = -1,000 + 10P where Q is the number of businesses that need services and P is the monthly fee, in dollars. a. At what average monthly fee would demand equal zero? b. At what average monthly fee would supply equal zero? c. Plot the supply and demand curves. d. What is the equilibrium price/output level? e. Suppose demand increases and leads to a new demand curve:
The following relations describe monthly demand and supply for a computer support service catering to small businesses. Q D = 3,000 - 10P Q S = -1,000 + 10P where Q is the number of businesses that need services and P is the monthly fee, in dollars. a. At what average monthly fee would demand equal zero? b. At what average monthly fee would supply equal zero? c. Plot the supply and demand curves. d. What is the equilibrium price/output level? e. Suppose demand increases and leads to a new demand curve:
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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The following relations describe monthly
Q D = 3,000 - 10P
Q S = -1,000 + 10P
where Q is the number of businesses that need services and P is the monthly fee, in dollars.
a. At what average monthly fee would demand equal zero?
b. At what average monthly fee would supply equal zero?
c. Plot the supply and demand curves.
d. What is the
e. Suppose demand increases and leads to a new demand curve:
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