Question:
Suppose the demand and supply curves for eggs for the United States are given by the following equations:
Qd= 100 - 20P
Qs= 10 + 40P
Where Qd = millions of dozens of eggs Americans would like to buy each year; Qs = millions of dozen of eggs U.S. farms would like to sell each year; P = price per dozen eggs.
a. Fill in the following table:
|
Price (Per dozen)
|
Quantity Demanded (Qd)
|
Quantity Supplied (Qs)
|
|
$.50
|
|
|
|
$1.00
|
|
|
|
$1.50
|
|
|
|
$2.00
|
|
|
|
$2.50
|
|
|
b. Use the information in the table to find the equilibrium price and equilibrium quantity.
c. Graph the demand and supply curves, and identify the equilibrium price and quantity.