question archive A retail chain will buy 1200 cordless phones if the price is $10 each and 900 if the price is $40
Subject:MathPrice: Bought3
A retail chain will buy 1200 cordless phones if the price is $10 each and 900 if the price is $40. A wholesaler will supply 1150 phones at $50 each and 1650 at $70 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means.
Market equilibrium occurs when the number of units is _______? and the price is $_____? per unit
What is the correct interpretation of the above anser?
A.) When the price is $40, the number of cordless phones demanded is not equal to the number of cordless phones supplied.
B.) When the price is $40, the number of cordless phones demanded equals the number of cordless phones supplied, which equals 900.
C.) When the price is $90, the number of cordless phones demanded equals the number of cordless supplied, which equals 2050.