Answer:
a, b — see the attachment
c — S(0) = 15; no units will be supplied at a price of $15 per unit
Step-by-step explanation:
a. The equilibrium production level (x) is where supply matches demand:
S(x) = D(x)
2x +15 = 385/(x +1)
(2x +15)(x +1) = 385 . . . . . multiply by the denominator
2x^2 +17x -370 = 0 . . . . . put into standard form
(2x +37)(x -10) = 0 . . . . . . factor the equation
x = 10 . . . . . the only positive solution
Then S(10) = 2·10 +15 = 35 . . . . the equilibrium price
The equilibrium production level is 10 units at a price of $35 per unit.
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b. See the attachment for the curves.
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c. The y-intercept of the supply curve is S(0) = 15. When x=0, the quantity supplied is zero. The corresponding price is $15 per unit. No suppliers are interested in producing any units at that price.
