Question

The domestic demand and supply for sugar are Qd = 40,000 − 200P and QSD = 10,000 + 300P. The foreign supply is QSF = 20,000 + 100P. What is the total supply of sugar in the domestic market?

Answer 1

Answer: Total supply of sugar = 30,000 + 400P

Explanation:

Given that,

Domestic demand for sugar: Qd = 40,000 − 200P

Domestic supply for sugar: QSD = 10,000 + 300P

Foreign supply: QSF = 20,000 + 100P

Total supply of sugar = Domestic supply + Foreign supply

                                    = QSD + QSF

                                    = 10,000 + 300P + 20,000 + 100P

                                    = 30,000 + 400P

Therefore,

Total supply of sugar = 30,000 + 400P