Question

The demand curve for a product is given by $q=$ $120,000-500 p$ and the supply curve is given by $q=$ $1000 p$ for $0 \leq q \leq 120,000,$ where price is in dollars. (a) At a price of $\$ 100,$ what quantity are consumers willing to buy and what quantity are producers willing to supply? Will the market push prices up or down? (b) Find the equilibrium price and quantity. Does your answer to part (a) support the observation that market forces tend to push prices closer to the equilibrium price?

          The demand curve for a product is given by $q=$ $120,000-500 p$ and the supply curve is given by $q=$ $1000 p$ for $0 \leq q \leq 120,000,$ where price is in dollars.
(a) At a price of $\$ 100,$ what quantity are consumers willing to buy and what quantity are producers willing to supply? Will the market push prices up or down?
(b) Find the equilibrium price and quantity. Does your answer to part (a) support the observation that market forces tend to push prices closer to the equilibrium price?

Added by Felix F.

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