Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Since demand in the Consumer Products market is characterized by a sharp

Since demand in the Consumer Products market is characterized by a sharp

Since demand in the “Consumer Products” market is characterized by a sharp “knee” around $400, assume the demand equation for an “I-widget” is:

q = 2M-2.5Kp for p<400

q= 4M-5Kp forp>400,                                               Where q = annual sales (quantity) & p = price

If the supply equation is: q = 3.2 x p2,

(1) - What is the market’s equilibrium quantity & price?

(2) - If I-Widget, Inc. requires a 35% markup over unit cost to coveroverhead, profit, taxes, etc., what must their unit cost be inorder to operate at market equilibrium?
 

Apr 16 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions