• 2022-06-05
    Thedemandandsupplyfunctionsforaleadingsmartphonearefurnishedbelow:
    Qdsp=1,000–20Psp+2I; Qssp=–200+50Psp–80W;where,
    Qdsp=Quantitydemandedinnumberofunits
    Qssp=Quantitysuppliedinnumberofunits
    Psp=Pricepersmartphonein$
    I=Householdincomein$peryear
    W=Wageratein$perhour
    Currently,thefirmhaspricedthesmartphoneat$250perunit.Ifthewageis$10perhourandthehouseholdincomeis$9,500peryear,thesmartphone’sequilibriumpriceisclosestto:
    A: $250
    B: $300
    C: $425.
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