Question

g Suppose there are 100 consumers with individual demand curves like the one in Question 1 and 10 producers with individual supply curves like the one in Question 1. Find the competitive equilibrium for this marke

Answer 1

The correct answer is "16".

Step-by-step explanation:

The given question seems to be incomplete. Please find the attachment of the full query.

According to the question,

The supply per producer when there are overall 10 producers,

⇒
`P((Y)/(10) )=10+((Y)/(200) )`

or,

⇒
`Y=200P-2000`

The consumption per producer when there are overall 100 producers,

⇒
`P((x)/(100) )= 40-((2x)/(100) )`

or,

⇒
`x = 2000-50 P`

At equilibrium,

⇒
`200P-2000=2000-50P`

On adding "2000" both sides, we get

⇒
`200P-2000+2000=2000-50P+2000`

⇒
`200P=4000-50P`

`250P=4000`

`P=(4000)/(250)`

`=16`