Question

The market supply curves and market demand curves for books are given as follows: supply curve:P = 0.000002Q, Demand Curve:P = 11- 0.000002Q, The short-run marginal cost curve:MC = 0.1 + 0.0009Q, the equilibrium quantity of books is?

Answer 1

Firstly, we should find "Q"

$0.000002Q=11 – 0.00002Q; 0.000022Q=11;$ $Q=500000$– equilibrium quantity Secondly,

The equilibrium price – $P(s)=0.000002Q; P(s)=1; P(d)=11 – 0.00002Q; P(d)=1So$

The equilibrium price of book is 1R.