Can anyone tell me what is missing from this? Cannot get positive answers and don't know why?
Suppose if the market price for a certain product is p dollars, then the demand for
that product will be
D(p) =50000p + 10000/p2 units.
At the same time, suppose that at a price of p dollars producers will be willing to supply.
S(p) =(1/3)p2 + 2p units.
(a) Plot the graphs of D and S on the same graph.
(b) Use the bisection algorithm to estimate the solution to the equation
D(p) = S(p).
(c) How many units of the product will be manufactured at the equilibrium price?
(d) What would happen if the producers raised the price above the equilibrium price?
What would happen if they lowered the price below the equilibrium price?
(e) What would happen if the producers increased production? What would happen if they lowered production?
- RealProLv 73 weeks agoFavorite Answer
What is missing is that the demand is tens of thousands, but the suppliers can't dish out 10 units. Maybe the supply is also measured in 10^4 units?
Also the demand doesn't make sense. Why is it increasing with price?
Check if you miscopied the problem and if not then move on because obviously something is wrong with it.