The demand for football tickets is Q=360-10P and the supply of football tickets is Q=20P. Calculate the gross price paid by consumers after a…
September 3, 2020
For the next several questions, consider the market for a type of medical implant used to treat pain conditions.
September 3, 2020

Assume that the equation for demand for bread at a small bakery is Qd = 60 – 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves, Pb is the price of bread in dollars per loaf, and Y is the average income in the town in thousands of dollars. Assume also that the equation for supply of bread is Qs = 30 + 20Pb – 30 Pf, where Qs is the quantity supplied and Pf is the price of flour in dollars per pound. Assume finally that markets clear, so that Qd = Qs.a. If Y is 10 and Pf is $1, solve mathematically for equilibrium Quantity and equilibrium Pb.b. If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.

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