Question

The market supply curves and market demand curves for books are given as follows:
Supply curve: P = 0.000002Q Demand curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC = 0.1 + 0.0009Q
The equilibrium price of books is …
1. R100
2. R1
3. R50
4. R5

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)=1

So, The equilibrium price of book is 1R(second variant)