Question #246142
Consider a market with 1,000 identical consumers with the following individual demand function p = 3 − qd and 1,000 identical sellers with the following individual supply function p = qs −1
. a) Obtain the market demand and supply functions and represent them graphically. b) Find the equilibrium price and quantity.Consider a market with 1,000 identical consumers with the following individual demand function p = 3 − qd and 1,000 identical sellers with the following individual supply function p = qs −1
. a) Obtain the market demand and supply functions and represent them graphically. b) Find the equilibrium price and quantity.
1
Expert's answer
2021-10-04T16:11:27-0400

d=3pqd=\frac{3-p}{q}


s=p+1qs=\frac{p+1}{q}

d=s


3pq\frac{3-p}{q} =p+1q\frac{p+1}{q}


2p+2q=0\frac{-2p+2}{q}=0


p=1

q=2


d=1

s=1


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