The demand function for x is D(p)  65  2p and the supply function is S(p)  20  p.The price that should be set to restrict the quantity supplied to 30 units is closest to

A) $5.
B) $10.
C) $15.
D) $50.
E) $55.

Question

Nathan Falco · Accepted Answer

Final Answer : B, Explanation :  To restrict the quantity supplied to 30 units, we need to set the supply function equal to 30 and solve for price:$30 = 20 + p \cdot 10 10p = 10 p = 1$Now that we have the price, we can find the corresponding demand:$Q = D(1) = 65 - 2 \cdot 1 = 63$Since the quantity demanded is greater than the restricted quantity supplied (63>30), this price will restrict the quantity supplied to 30 and reach equilibrium.Therefore, the best choice is B, $10.

The demand function for x is D(p)  65  2p and the supply function is S(p)  20  p.The price that should be set to restrict the quantity supplied to 30 units is closest to

A) $5.
B) $10.
C) $15.
D) $50.
E) $55.

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Learning Objectives

Related questions

The demand function for x is D(p)  65  2p and the supply function is S(p)  20  p.The price that should be set to restrict the quantity supplied to 30 units is closest toA) $5.B) $10.C) $15.D) $50.E) $55.

Definitions

Learning Objectives

Learning Objectives

Related questions

The demand function for x is D(p)  65  2p and the supply function is S(p)  20  p.The price that should be set to restrict the quantity supplied to 30 units is closest to

A) $5.
B) $10.
C) $15.
D) $50.
E) $55.