Please help me regarding calculating equilibrium price
Suppose that there are 20 million consumers in the economy. There are two types ofconsumers – types A and B, and there are 10 million type-A consumers as well as 10million type-B consumers. Each type-A consumer’s demand for meat products isdescribed as follows:
𝐷! =5−0.2𝑝,for𝑝 ≤25,𝐷! =0,for𝑝 ≥25.
where 𝐷! Is a type-A consumer’s demand for meat products (i.e. 𝐷! Kg) and 𝑝denotes the price of meat products (i.e. £𝑝/kg). Each type-B consumer’s demand formeat products is described as follows:
𝐷! =6−0.3𝑝,for𝑝 ≤20,𝐷! = 0, for 𝑝 ≥ 20.
where 𝐷! Is a type-B consumer’s demand for meat products (i.e. 𝐷! Kg).
The aggregate supply of meat products (𝑆 kg) in the economy is described by the
following supply function:
[IMG]file:///page1image11536[/IMG] [IMG]file:///page1image11696[/IMG] [IMG]file:///page1image11856[/IMG] 𝑆 = 5,000,000𝑝.kg when 𝑝 = 10.
(b) Verify that the equilibrium price of meat products is £11/kg (i.e. 𝑝 = 11) and theequilibrium quantity is 55 million kg in the economy. (10 marks)