Suppose the demand and supply curves for eggs in the United States are given by the following equations:
Q,, = 100 - 20P
Qs = 10 + 40P
where Q(; = millions of dozens of eggs Americans would like to buy each year; Q, = millions of dozens of eggs U.S. farms would like to sell each year; P = price per dozen of eggs,
a. Fill in the following table:
(a) Price Quantity Demanded
(in Millions) Quantity Supplied
(in Millions)
$.50
$1.00
$1.50
$2.00
$2.50
b. Use the information in the table to find the equilibrium price and quantity.
c. Graph the demand and supply curves and identify the equilibrium price and quantity.