Reference no: EM132488498

The inverse demand for specialized laptops is given by P = 120 - 1/2 Q^D where (P) is the price of a laptop and Q^D is the quantity of laptops desired per week, in thousands. The inverse supply of these specialized laptops is given by P = 20 + 2Q^S where Q^S is the quantity of laptops offered for sale each week, in thousands.

(a) Accurately graph the inverse supply and inverse demand curves, with P on the vertical axis and Q on the horizontal axis.

(b) What are the buyers' and sellers' choke prices in your graph? How can you find those same choke prices by looking at the inverse demand and inverse supply equations?

(c) Equate inverse demand and inverse supply to find the market equilibrium quantity of laptops sold.

(d) Plug the quantity you found in (c) into the inverse demand curve to solve for the equilibrium price. Then double-check your work by plugging that same quantity into the inverse supply curve.