Answer:
1) Correct supply function according to the state information
S=10P−20
Slope 10
2)
Equilibrium
Q = 60
P = $8
missing information:
Demand QD = 100 − 5P
Step-by-step explanation:
The supply is variable for price and we are given the information that for each price there are 20 fewer towels thus, there is a constant decreased of 20 at each level of the curve.
S' = 10P
S'' = 10
The slope of the curve is 10
Equilibrium of D1 and S2
100 - 5P = 10P - 20
120 = 15P
8 = P
Supplu Quantity = 10 x 8 - 10 = 60
Demand Quantity = 100 - 5 x 8 = 100 - 40 = 60