# Suppose the market for a certain dosage of generic cholesterol-lowering statin drugs has a supply...

## Question:

Suppose the market for a certain dosage of generic cholesterol-lowering statin drugs has a supply described by P = 15.88 + 0.19Q (with price measured in cents per capsule and quantity in millions of capsules per day) and a demand described by P = 98.74 - 1.25Q.

Calculate the equilibrium quantity (in million capsules per day).

(As above) Suppose the market for a certain dosage of generic cholesterol-lowering statin drugs has a supply described by P = 15.88 + 0.19Q (with price measured in cents per capsule and quantity in millions of capsules per day) and a demand described by P = 98.74 - 1.25Q.

Calculate the equilibrium price (in cents).

## Market Equilibrium Price and Quantity:

In perfect competition, market price is determined by forces of supply and demand. In this sense, the market is the price maker and firms are price takers.

In perfect competition, the market equilibrium price is determined by forces of supply and demand.

By equating supply and demand equations, we can...

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