Answer to Question #173234 in Microeconomics for Hardik

Question

he market for vanilla ice cream is given by the following information: 𝑄 𝑑 = 800 − 30𝑃 𝑣 + 10𝑃 𝑐 𝑄 𝑠 = 250 + 30𝑃 𝑣 − 10𝑃𝑚 Where 𝑄 𝑑 is the quantity demanded, 𝑄 𝑠 is quantity supplied, 𝑃 𝑣 is the price of vanilla ice cream, 𝑃 𝑐 is the price of chocolate ice cream and 𝑃𝑚 is the price of milk.

Answer 1

In equilibrium Qd = Qs, so:

800 − 30𝑃 𝑣 + 10𝑃 𝑐 = 250 + 30𝑃 𝑣 − 10𝑃𝑚,

60Pv = 10Pc + 10Pm + 550,

Pv = (Pc + Pm + 55)/6.