UNISA SBL DSC3702

Questions 3 and 4 are based on the following information: The demand and supply functions for free-range chickens are Pd = 50 − 0,6Q and Ps = 20 + 0,4Q, where P is the price and Q the quantity. Question 3 The equilibrium price and quantity are [1] P = 8,00; Q = 70. [2] P = 32,00; Q = 30. [3] P = 48,50; Q = 3. [4] P = 68,00; Q = 30. Question 4 If free-range chickens are subsidised by R4, the equilibrium price and quantity are [1] P = 17,20; Q = 3.