Supply and Demand
The quantity supplied of a good is the amount of product that a company is willing to make available for sale at a given price. The quantity demanded of a good is the amount of product that a consumer is willing to purchase at a given price. Suppose that the quantity supplied S, and quantity demanded, D, of a cellular telephones each month are given by the following functions
- The equilibrium price of a product is defined as the quantity supplied is equal to quantity demanded. That is, the price at which S(p)=D(p)S(p)=D(p). Find the equilibrium price of cellular phone. What is the equilibrium quantity–the amount demanded (or supplied) at the equilibrium price?
- Determine the price for which quantity supplied is greater than quantity demanded, that is, solve the inequality S(p)>D(p)S(p)>D(p)
- Graph the S=S(p)S=S(p), D=D(p)D=D(p) on graphing calculator () and label the equilibrium price (part is 3 is optional)
( Go to setting and Choose -5<x<110, and -5<y<3000 as the scale for x and y axis)