− 200 + 50 = 1000 − 25 p p = 1200 = 16 p a. 75 (16) (16) = − 200 + 50 = 600 S ( p S p Thus, the equilibrium price is $16, and the = ) equilibrium quantity is 600 T-shirts. = D ( ) ( ) b. Solve > . ( ) D p S p . p 1000 − 25 > − 200 + 50 p p (10) (10) a. = 19.25 + 585.72 = B 1200 > 75 p $778.22 (t ) b. Solve = 19.25t + 585.72 = 893.72 B 1200 > p 19.25t + 585.72 = 893.72 75 19.25t = 308 > 16 p The demand will exceed supply when the = 308 = 16 years t price is less than $16 (but still greater than 19.25 $0). Therefore, the average monthly benefit will be $893.72 in the year 2006. c. The will eventually be increased.
a. S ( p ) = D ( p ) . − 200 + 50 p = 1000 − 25 p p = p = 1200 = 16 75 S (16) = − 200 + 50 (16) = 600 Thus, the equilibrium price is $16, and the equilibrium quantity is 600 T-shirts. b. Solve D ( p ) > S ( p ) . 1000 − 25 p > − 200 + 50 p a. B (10) = 19.25 (10) + 585.72 = $778.22 1200 > 75 p b. Solve B (t ) = 19.25t + 585.72 = 893.72 19.25t + 585.72 = 893.72 19.25t = 308 t = 308 = 16 years 19.25 Therefore, the average monthly benefit will be $893.72 in the year 2006. 1200 > p 75 16 > p The demand will exceed supply when the price is less than $16 (but still greater than $0). c. The will eventually be increased.