Schmeary and Mostart are two less famous 19th century painters. The total world stock of Schmeary paintings is 100, and the stock of Mostart paintings is 150. The demand functions for the two types of paintings are:
DS(pS) = 200 - 4pS - 2pM
DM(pM) = 200 - 3pM - pS
a. What is the equilibrium price of Schmeary paintings? [dollars, no cents]
b. What is the equilibrium price of Mostart paintings? [dollars, no cents]
A museum fire destroys 10 Schmeary paitings.
c. What is the new equilibrium price of Schmeary paintings? [dollars, no cents]
d. What is the new equilibrium price of Mostart paintings? [dollars, no cents]