1. Office building maintenance plans call
for the stripping, waxing, and buffing of ceramic floor tiles. This work is
contracted out to office maintenance firms, and both technology and labor
requirements are very basic.
Supply and demand
conditions in this perfectly competitive service market in New York are:
|
QS = 2P - 20
|
(Supply)
|
|
|
|
|
QD = 80 - 2P
|
(Demand)
|
-
where Q is thousands of hours of floor reconditioning per month, and P is the
price per hour.
|
A.
|
Algebraically determine the market
equilibrium price/output combination.
|
|
|
|
|
B.
|
Use a graph to confirm your answer.
|
For the graph, use prices: 10, 20,30,40,50,60,70,80,90
and
Quantities:5,10,15,20,25,30,35,40,45,50,55,60,65
1. Office building maintenance plans call
for the stripping, waxing, and buffing of ceramic floor tiles. This work is
contracted out to office maintenance firms, and both technology and labor
requirements are very basic.
Supply and demand
conditions in this perfectly competitive service market in New York are:
|
QS = 2P - 20
|
(Supply)
|
|
|
|
|
QD = 80 - 2P
|
(Demand)
|
-
where Q is thousands of hours of floor reconditioning per month, and P is the
price per hour.
|
A.
|
Algebraically determine the market
equilibrium price/output combination.
|
|
|
|
|
B.
|
Use a graph to confirm your answer.
|
For the graph, use prices: 10, 20,30,40,50,60,70,80,90
and
Quantities:5,10,15,20,25,30,35,40,45,50,55,60,65