document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1201754>Question 1201754</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that the demand and supply in the automobile market are represented by the following equations:\r<BR>\n" );
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document.write( "Demand: P= 10  -  0.2Qd<BR>\n" );
document.write( "Supply: P=2 + 0.2Qs \r<BR>\n" );
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document.write( "a.	Determine the equilibrium price and quantity. \r<BR>\n" );
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document.write( "b.	Demonstrate your answer graphically.\r<BR>\n" );
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document.write( "c.	Suppose the price of petrol increases, demonstrate graphically its effect on the equilibrium point.\r<BR>\n" );
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document.write( "d.	Assume that there is a technological improvement on the cars’ production, what will be its effect on the cars’ market?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #836268 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52780)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=836268\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
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document.write( "They want you solve this system of two equations in two unknowns\r\n" );
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document.write( "    P = 10 - 0.2Q    (1)\r\n" );
document.write( "    P =  2 + 0.2Q    (2)\r\n" );
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document.write( "Since left sides are identical, right sides are equal\r\n" );
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document.write( "    10 - 0.2Q = 2 + 0.2Q\r\n" );
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document.write( "    10 - 2 = 0.2Q + 0.2Q\r\n" );
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document.write( "       8   =     0.4Q\r\n" );
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document.write( "       Q   =     8/0.4 = 80/4 = 20.\r\n" );
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document.write( "<U>ANSWER</U>.  Q = 20;  P = 10 - 0.2Q = 10 - 0.2*20 = 10 - 2*2 = 10 - 4 = 6.\r\n" );
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document.write( "Solved.\r<BR>\n" );
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document.write( "Do the rest on your own.\r<BR>\n" );
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document.write( "In the future, do not pack more than one problem/question per post.\r<BR>\n" );
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