Solve the problem.Let the supply and demand functions for a certain model of electric pencil sharpener be given by p = S(q) =
q and p = D(q) = 18 -
q ,where p is the price in dollars and q is the quantity of pencil sharpeners (in hundreds). Graph these functions on the same axes (graph the supply function as a dashed line and the demand function as a solid line). Also, find the equilibrium quantity and the equilibrium price.
A.
Equilibrium quantity: 1080
Equilibrium price: $7.20
B.
Equilibrium quantity: 720
Equilibrium price: $10.80
C.
Equilibrium quantity: 950
Equilibrium price: $7
D.
Equilibrium quantity: 900
Equilibrium price: $6
Answer: D
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