Question

The burrito truck industry in the city is perfectly competitive. On any given evening, the market demand for burritos is given by QD=59−p where QD is the quantity of burritos demanded per evening, and p is the price of a burrito. burritos are sold. Given space constraints, each burrito truck is able to serve a maximum of 10 customers per evening.

Answer 1

The question involves analyzing market demand in the burrito truck industry, considering the constraints of maximum customers served and how this affects market equilibrium in a perfectly competitive market.

Step-by-step explanation:

The student's question appears to be centered on the analysis of perfectly competitive markets within the context of the burrito truck industry in a city. Specifically, it addresses how the market demand function QD=59−p influences the number of burritos demanded, taking into account the constraints of burrito trucks and their capacity to serve customers. Additionally, the scenario suggests examining what happens when market conditions change, such as an increase in burritos' price and how this affects the supply-demand equilibrium.

To analyse this further, we would set the market demand equal to market supply and solve for the market price. Here's an example using a hypothetical supply function (not provided in the question): If the supply function were Qs = 2 + 5P (similar to the one for personal pizzas), where Qs is the quantity supplied, equilibrium is found where QD = Qs, or 59 - P = 2 + 5P. Solving this would provide us with the equilibrium price and quantity. However, the actual supply function for burritos needs to be known for precise calculations.