There are only two individuals that make up the market


There are only two individuals that make up the market demand for this market. Person 1 is willing to pay a price P = 200 - 50 q1 for each quantity q1 that person 1 consumes. The willingness to pay for person 2 is P = 200 - 100 q2 .

a) Give a formula for the market demand.

b) If the market supply is Q=(400+8P)/200, what is the equilibrium price and quantity?

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Business Economics: There are only two individuals that make up the market
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