Te aggregate demand function for donuts is given by dp


The aggregate demand function for donuts is given by D(P) = (131/2) - (p/2) and the aggregate supply function is given by S(P) = (p/7) - (5/7). Suppose that the market for donuts is perfectly comeptitive.

i) What are the equilibrium price and quantity?

ii) What are the inverse demand and supply functions for donuts?

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Business Economics: Te aggregate demand function for donuts is given by dp
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