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  3. suppose the quantity supplied s and the quantity demanded d...

Question: suppose the quantity supplied s and the quantity demanded d...

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Suppose the quantity supplied S and the quantity demanded D of beach towels are given by the following functions S(p) = −200 + 50p and D(p) = 1000 − 25p,where p is the price of a beach towel.

a. Derive a function E(p) showing excess supply.

b. In what price range will excess supply exceed zero?  

c. What is the equlibrium quantity of beach towels that will be sold?

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