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Q. Consider the following demand as well as schedule for bottles of water:
COST (P) Quantity Demand as well as used by Consumers(bottles/month)$0.50 1,1001.00 1,0501.50 1,0002.00 9502.50 9003.00 8503.50 8004.00 7504.50 7005.00 650
The equations representing demand as well as, inverse demand as well as, supply as well as inverse supply are as follows:
Demand as well as: Qd = - 100P + 1,150Inverse Demand as well as: P = - 0.01 Qd + 11.5Supply: Qs = 400 P - 100Inverse Supply: P = 0.0025 Qs + .25 Using this information, determine the equilibrium cost as well as quantity for bottled water in this market. Clarify what will happen in the market if cost equals $4.00. What will happen if cost equals $2.00?
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