Suppose you are faced with demand P102Q and your current pro

Suppose you are faced with demand P=10-.2Q and your current production (supply) is 10. What price should you charge to sell all your product?

Solution

P = 10 - 0.2Q

The demand function becomes: Q = 50 - 5P

Supply = 10

For equilibrium,

Demand = supply

50 - 5P = 10

=> 5P = 40

=> P = $8

Therefore, at $8 all the products will be sold