Question

In a very small town, bill and jared are the only potential buyers from the local fisherman. bill's demand function for pounds of fish is given by =20−p , where is the number of pounds of fish demanded, and p is the price of a pound of fish. jared has the same reservation price as bill. however, at any price below the reservation price, jared is willing to buy twice as many pounds of fish as bill.

Answer 1

In a small fishing village, the original equilibrium price for fish is $3.25 per pound, and the equilibrium quantity is 250,000 pounds.

Step-by-step explanation:

In the demand and supply model, the demand curve (D) represents the quantity of fish that buyers are willing to purchase at different prices. The supply curve (S) represents the quantity of fish that sellers are willing to sell at different prices. The original equilibrium price is $3.25 per pound, where the quantity demanded and quantity supplied intersect. In this case, the equilibrium quantity is 250,000 pounds of fish.