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Assume the Following Demand and Supply Equations: Qd=900-20P, and Qs=150+10P

question 68

Essay

Assume the following demand and supply equations: Qd=900-20P, and Qs=150+10P.
a) Graph the two curves.
b) Calculate the slopes of the two curves.
c) Calculate the equilibrium price and quantity.
d) If the price was $30, how much would the quantity demanded be? (Show it on the graph)
e) If the price was $30, how much would the quantity supplied be? (Show it on the graph)


Definitions:

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, contributing to covering fixed costs and generating profit.

Activity Rate

A measure used to quantify the level of activity or engagement in a particular process or system, often used in costing and efficiency analysis.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Cost Per Unit

The calculation of the cost to produce or acquire a single unit of product, including direct materials, labor, and overhead.

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