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PART 1
A company is about to introduce a new widget and is willing to supply 30 widgets per day for $10 each and 38 widgets per day for $22 each. It also conducted market research and determined that consumers will buy 45 widgets per day if they cost $10.50 each, but only 10 widgets per day if they cost $35 each. Determine the exact Supply and Demand functions, with price depending on quantity; provide exact functions in response.
PART 2
Using the functions you determined above, what will happen in the marketplace if the widgets are introduced at a price of a) $12.50? or b) $23.25? In each case, state not only whether there is a surplus or shortage, but also by how much.
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