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Answer 1 · 2017-03-24T20:39:48

$Q=8/7~~1.143$ to 3 decimal places

P_0= 15 5/7 =110/7 ~~ 15.714# to 3 decimal places

Equilibrium is achieved at the point where $P_d=P_s$ so we have:

$50-30Q=P_d=P_s=14+1.5Q$

$50-30Q=14+1.5Q$

$50-14=30Q+1.5Q$

$31.5Q=36$

$Q=36/31.5 =72/63=8/7~~1.14285...$

Substituting for Q

$P_d=50-30Q ->P_d=50-30(8/7) = 15 5/7 = 110/7$

$P_s=14+1.5Q -> P-s=14+1.5(8/7) = 15 5/7 =110/7$

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