Answer:
20 rands/kg
130,000 kg
Step-by-step explanation:
The equilibrium quantity and price are the solution to the system of equations ...
p = 120 -0.7q
p = 3 + 0.2q
Setting these equal, we get ...
0.2q +3 = p = -0.7q +120
0.9q = 117 . . . . . . . add 0.7q-3 to both sides
q = 117/0.9 = 130
p = 3 +0.2·130 = 29
The equilibrium price of maize meal is 29 rands per kg; the market equilibrium quantity is 130,000 kg.
