1. The supply of an antibiotic is Q= 30 X P – 200. The demand for it is Q = 8,800 – 20 X P. What is the market equilibrium price and quantity?
2. Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. One group of residents has a demand curves for public health information of the form Q = 50 - P. Here Q is the number of public health broadcasts per month and P is the price per broadcast. Another group has a demand curve of Q = 140 - P.
At a price of $100 per broadcast, how many broadcasts per month will be demanded (Add the quantities demanded by each group.