Suppose that the supply and demand for printed baseball caps for a particular week are
p=0.4q+3.2 (Price-supply equation)
p= -1.99 + 17 (Price-demand equation)
where p is the price in dollars and q is the quantity in hundreds.
(A) Find the supply and demand (to the nearest unit) if baseball caps are $4
each. Discuss the stability of the baseball cap market at this price level.
(B) Find the supply and demand (to the nearest unit) if baseball caps are $9
each. Discuss the stability of the baseball cap market at this price level.
(C) Find the equilibrium price and quantity.