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Springfield School District will buy 25 TI-84 calculators from Texas Instruments if the price is $100 for each and 50 if the price is $50 for each. Texas Instruments is willing to supply the district with 60 for $120 each, but only 10 if the price is $40. Assuming that the supply and demand functions for the calculators are linear, find supply and demand function as well as the market equilibrium point.

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Final answer:

The supply and demand functions are S(p) = 0.25p and D(p) = -0.25p + 75. The market equilibrium point is a price of $50 and a quantity of 13 calculators.

Step-by-step explanation:

To find the supply and demand functions as well as the market equilibrium point, we can use the information provided. Let's assume the supply function is S(p) = mp + b, where m is the slope and b is the y-intercept.

From the given information, we know that when the price is $100, the supply is 25, and when the price is $50, the supply is 50. This gives us the equations:

25 = 100m + b

50 = 50m + b

Solving these equations, we find that m = 0.25 and b = 0.

Similarly, assuming the demand function is D(p) = mp + b, we can use the given information to find the values of m and b. When the price is $100, the demand is 50, and when the price is $50, the demand is 25. This gives us the equations:

50 = 100m + b

25 = 50m + b

Solving these equations, we get m = -0.25 and b = 75.

The market equilibrium point is where the quantity demanded is equal to the quantity supplied. We can find this by setting the demand function equal to the supply function:

0.25p + 75 = -0.25p + 50

Simplifying this equation, we get:

0.5p = 25

p = 50

So the equilibrium price is $50. Substituting this back into either the supply or demand function, we can find the equilibrium quantity. Using the supply function:

Q = 0.25(50) + 0 = 12.5

Therefore, the market equilibrium point is a price of $50 and a quantity of 12.5 calculators (which can be rounded up to 13 calculators).

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