The Evil Lemming Empire (cute fuzzy critters bent on world domination), are producing high heels that are designed to give blisters to all those who wear them (sinister laugh). The Chief Economic Lemming determined the S= x^2 + x + 3 and
D=21-3x^2
What is the equilibrium price and quantity (x=Q, y=P)?
Estimate the new demand price if an additional 2 shoes were produced above the equilibrium quantity?
Answer:
you gotta solve S=D or
x^2 + x + 3 = 21-3x^2
Now go look up "quadratic equation" in wikipedia.
May the dark side be with you.
'Equilibrium' is a fancy name the economists give to math problems when you solve the problem and get unique values for the parameters involved.
The question you have to ask yourself is what are the parameters and what is the math problem to be solved?
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