Solve the Problem. -Assume That the Price Per Unit D of a Certain

question 15

Multiple Choice

Solve the problem.
-Assume that the price per unit d of a certain item to the consumer is given by the equation d = 35 - .10x, where x is the number of units in demand. The price per unit from the supplier is given by the equation s = .2x + 20,
Where x is the number of units supplied. Find the equilibrium price and the equilibrium quantity.

• A) equilibrium price: $35 per unit; equilibrium quantity: 50 units
• B) equilibrium price: $50 per unit; equilibrium quantity: 30 units
• C) equilibrium price: $30 per unit; equilibrium quantity: 50 units
• D) equilibrium price: $20 per unit; equilibrium quantity: 50 units

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Definitions:

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Promisee

The party in a contract who is to receive the benefit or performance specified in the agreement.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.