A demand function and a supply function for the same commodity is given.
D(p) = 35 - 7 ln p million units;
S(p) = \begin{cases} 0 & \text{for } p < 11 \\ 3(1.081)^p & \text{for } p \ge 11 \end{cases} million units,
p dollars per unit
(a) Locate the shutdown point. (Round your answers to three decimal places.)
(p_o, S(p_o)) = (
)
Write a sentence of interpretation for this point.
Producers are willing to supply
million units at a market price of $
per unit. Below $
per unit, producers will shutdown.
(b) Locate the point of market equilibrium. (Round your answers to three decimal places.)
(p*, q*) = (
)
Write a sentence of interpretation for this point.
At a price of $
per unit, producers are willing to produce -Select-
million units, which is what consumers are willing to purchase.
