The demand for your college newspaper is 6,000 copies each week if the paper is given away free of charge, and drops to 5,000 each week if the charge is 10¢/copy. However, the university is prepared to supply only 900 copies per week free of charge, but will supply 2,300 each week at 20¢ per copy.
(a) Write down the associated linear demand and supply functions. (p is in dollars.)
demand function q(p) =
supply function q(p) =
(b) At what price should the college newspapers be sold so that there is neither a surplus nor a shortage of college newspapers?