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Mathematics, 18.10.2019 22:30 NetherisIsTheQueen
In a particular geographical area, the demand function for each person i for a particular good is q^d_i = 100 + 0.2i_i - 9p where q^d_i is quantity demanded for person i, i_i, is person i's income, and p is the commodity's price. (note that p is constant across individuals, since all individuals face the same price. therefore no i subscript is needed.) for the firms in this area the supply function for this good is q^s_j = -50 + 20p where q^s_j is the quantity supplied of the good by firm j. (note that a different subscript is needed. why? ) there are 5 firms and 100 consumers. total income of the consumers is $100,000. equilibrium occurs where sigma^100_i = 1 q^d_i = sigma^5_j = 1 q^s_j (i. e., market demand equals market supply). find the equilibrium price.
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