Is this "equilibrium price, etc" problem even math?

B

brian226

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Apr 10, 2008
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I'm trying to figure out if this is a math problem. Can anyone help me with this???

We know that the quantity supplied is related directly to price. Assume that the following equation represents the supply of widgets (Positive 10 is multiplied by P.)
Qs=23+10P
We also know that the quantity demanded is related iversely to price. Assume that the following equation represents the demand for widgets (Note negative 3 is multiplied by P and positive 2 is multiplied by I.)
Qd = 15 - 3p +21
The variable, I, represents the average income of buyers - an important determinant of demand (because when income rises, we buy more). Assume that average income equals $30 thousand (I=30).
1.In the market, what is the equilibrium price and quantity of widgets (assuming I=30)?
2. If the economy suffered a severe recession and average income fell to $23.4 thousand (I=23.5), what is the new equilibrium price and quantity of widgets in the market?

Does this make sense to anyone?
 
Did your book and instructor not explain any of the terms or relationships...? :shock:

Eliz.
 
Nope, thats all I got. Is there any potential solutions or is it not even a math problem.

Thanks!
 
brian226 said:
Nope, thats all I got. Is there any potential solutions or is it not even a math problem.
Click to expand...
This isn't exactly a "math" question; it's more economics or finance. But obviously the question uses mathematical formulae.

However, since your class hasn't covered any of the prerequisite material, there is no way to explain this to you in anything as simple and as short as a forum post. (I certainly hope you're not paying for such dreadful instruction!)

If this material is important to the course, you may need to hire a qualified local tutor and set aside a few hours a week for diligent study. By meeting with you face-to-face, your tutor will be able to see what you've been given and what is being required; then he can spend a few weeks or months teaching you all of the material that your instructor and textbook never mentioned.

Good luck! :D

Eliz.
 
Yeah its a weird way of teaching. The instructor gave us this "stumper" before we were required to read the material. Which is confusing to me, maybe its his way of making us read the material the first week and just write in our journal the following. I don't know but thanks for your help
 
If it is a college level class - it is a good way to find out who are there to be "spoon-fed" and who are there to learn.

There is nothing wrong in wanting to be spoon-fed - just that teachers have to know and teach accordingly.
 
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