Find the approximate equilibrium quantity and price

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Reference no: EM131007132

If 3000 two-bedroom houses are demanded per year, at a price of $500,000 per unit. However, for every $40,000 increase in the price per unit, the quantity of units demanded falls by 200. Contractors are unwilling to build and sell any two-bedroom houses for any price less than $100,000 but are willing to sell as much as 7700 unit per year at a price of $1 million. If the demand and supply curves are assumed to be linear.

(i) Find the demand curve.

(ii) Find the supply curve.

(iii) Find the approximate equilibrium quantity and price.

Reference no: EM131007132

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