Thedemandandsupplyfunctionsforaleadingsmartphonearefurnishedbelow:<br/>Q<sup>d</sup><sub>sp</sub>=1,000–20Psp+2I; Q<sup>s</sup><sub>sp</sub>=–200+50Psp–80W;where,<br/>Q<sup>d</sup><sub>sp</sub>=Quantitydemandedinnumberofunits<br/>Q<sup>s</sup><sub>sp</sub>=Quantitysuppliedinnumberofunits<br/>P<sub>sp</sub>=Pricepersmartphonein$<br/>I=Householdincomein$peryear<br/>W=Wageratein$perhour<br/>Currently,thefirmhaspricedthesmartphoneat$250perunit.Ifthewageis$10perhourandthehouseholdincomeis$9,500peryear,thesmartphone’sequilibriumpriceisclosestto: A: $250 B: $300 C: $425.
Thedemandandsupplyfunctionsforaleadingsmartphonearefurnishedbelow:<br/>Q<sup>d</sup><sub>sp</sub>=1,000–20Psp+2I; Q<sup>s</sup><sub>sp</sub>=–200+50Psp–80W;where,<br/>Q<sup>d</sup><sub>sp</sub>=Quantitydemandedinnumberofunits<br/>Q<sup>s</sup><sub>sp</sub>=Quantitysuppliedinnumberofunits<br/>P<sub>sp</sub>=Pricepersmartphonein$<br/>I=Householdincomein$peryear<br/>W=Wageratein$perhour<br/>Currently,thefirmhaspricedthesmartphoneat$250perunit.Ifthewageis$10perhourandthehouseholdincomeis$9,500peryear,thesmartphone’sequilibriumpriceisclosestto: A: $250 B: $300 C: $425.
1