contestada

The City of Cambridge is concerned about the number of wild MIT students who will be partying on Halloween and wants to limit the number of parties in order to curb the costs of policing underage drinking and noise violations. The city has asked you to evaluate the welfare implications of policies they are considering. Think of price here as the amount of money party hosts will collect at the door from party-goers. The demand for parties is given by . The supply of parties is given by .

Find the equilibrium price and quantity in the market for Halloween parties.

Respuesta :

Parrain

Based on the demand and supply functions for the market for Halloween parties attended by MIT students, the equilibrium price is $100 and the quantity is 100.

What are the equilibrium price and quantity for Halloween parties?

The equilibrium price and quantity can be found by equating supply and demand.

This gives:
Price = Quantity

Price = 300 - 2p

300 = 3 x Price

Price = 300 / 3

= $100

The quantity would also be 100 parties.

The rest of the question is:

Think of price here as the amount of money party hosts will collect at the door from party-goers. The demand for parties is given by Q =300−2p. The supply of parties is given by Q = p.

Find out more on equilibrium pricing at https://brainly.com/question/22569960.

#SPJ1

Otras preguntas