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About Leo Lingham
Expertise
Questions could cover business analysis, business planning, business development, strategic planning, corporate planning, corporate development, manpower planning etc

Experience
18 years working managerial experience in business planning,
strategic planning, organization planning , human resource planning etc.

plus

24 years in management consulting covering business planning,strategic planning, marketing planning, product planning,
sales planning etc

Organizations
BESTBUSICON Pty Ltd--PRINCIPAL

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINISTRATION

 
   

You are here:  Experts > Business > Small Business: UK > Writing Business Plans > Managerial economics

Writing Business Plans - Managerial economics


Expert: Leo Lingham - 10/15/2009

Question
"Q. The demand and supply conditions of a product are represented by the following equation:
Aggregate Demand : Q = 15-0.3P
Aggregate Supply : Q = 5 -0.1 P
Calculate the equillibrium price."


Answer
RUMA,
HERE  IS  YOUR  ANSWER.
REGARDS
LEO LINGHAM
======================


ANSWER.

AT  THE  EQUILIBRIUM  PRICE


Qd = Qs

Qd[15-0.3P] = Qs[5-0.1P]

15 - 0.3P =  5 - 0.1P

10 = 0.2P

P = 10 / 0.2

P = 10X10 / 2 = 50

THE EQUILLIBRIUM  PRICE = 50
=================================


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