Ethio-telecom estimated the demand and supply for mobile data packages in MB per day as Qd=50-2P and P=Qs/2+5. With the introduction of new telecom service providers, the price is expected to be 5 cents per MB. (5%)

Jul 12, 2021 | Hire us to write

  1. Ethio-telecom estimated the demand and supply for mobile data packages in MB per day as Qd=50-2P and P=Qs/2+5. With the introduction of new telecom service providers, the price is expected to be 5 cents per MB. (5%)
    1. Estimate the equilibrium price and quantity
    2. What would happen to the market at the new prices of 5 cents?
    3. Compare the price, the demand, and the supply before and after the introduction of the new service provider

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