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b) Let's continue working with the same market, defined by the following functions:
Qs = -5 + 2P
Qd = 10 - P
That market is graphed below. Use the demand and supply functions to find the numerical
values of each letter (A-D).
Price
A
8
B
Supply
2.5
Demand
0
C
D
7
10
Quantity
"A" is on the y-axis, so it represents the price of a corresponding quantity.
The value of "A" is $
Show your calculation:
"B" is on the y-axis, so it represents the price of a corresponding quantity.
The value of "B" is $
Show your calculation:

Respuesta :

eyobitif1410

Answer:

To find the values of A and B, we'll substitute the corresponding quantities into the demand and supply functions.

For A:

Qs = -5 + 2P

Given Qs = 8

8 = -5 + 2P

2P = 8 + 5

2P = 13

P = 13/2

P = 6.5

For B:

Qd = 10 - P

Given Qd = 2.5

2.5 = 10 - P

P = 10 - 2.5

P = 7.5

So, A = $6.5 and B = $7.5.