# 12. A market consists of 7000 identical households and 300 identical producers. The demand…

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12. A market consists of 7000 identical households and 300 identical producers. The demand… 1 answer below » 12. A market consists of 7000 identical households and 300 identical producers. The demand equation for a typical household over a week is given by Q d i = 44 . 293 − 2 . 5 P + 0 . 001 PCDI i + 0 . 3 P S i = 1 , 2 , 3 ,… , 7000 And the supply equation for a typical firm over a week is given by Q s j = − View complete question » 12. A market consists of 7000 identical households and 300 identical producers. The demand equation for a typical household over a week is given by Q d i = 44 . 293 − 2 . 5 P + 0 . 001 PCDI i + 0 . 3 P S i = 1 , 2 , 3 ,… , 7000 And the supply equation for a typical firm over a week is given by Q s j = −40 + 12 P − 0 . 4 P L − 0 . 15 P E j = 1 , 2 , 3 ,… , 300 where PCDI is the average per capita disposable income, P s is the price of a substitute good, P L is the price a unit of labor, and P E is the price of a unit of energy. (a) Write the market demand and supply equations. (b) Assume the average household income is $50,000 and the average size of households is 4. Further assume that P s , P L , and P E are $30, $80, and $70, respectively. Determine the market equilibrium price and quantity. View less » Nov 19 2015 05:06 PM