Question

If the supply function for a product is given by p = 100eq q 1 , where q represents the number of hundreds of units, what will be the price p when the producers are willing to supply 500 units? (round your answer to two decimal places.)

Answer 1

The price p will be approximately $14,841 when the producers are willing to supply 500 units.

Step-by-step explanation:

The given supply function is represented as p = 100eq q 1, where q represents the number of hundreds of units. To find the price p when the producers are willing to supply 500 units, we substitute q=5 (since 500 units is represented as 5 hundreds) into the supply function:

p = 100eq(5) 1

p = 100e 5

Using a calculator or logarithmic tables, we can find that e^5 is approximately 148.41. Therefore, the price p will be approximately $14,841. Just remember to round your answer to two decimal places.