The Quantity Demanded of a Certain Brand of DVD Player

Multiple Choice

The quantity demanded of a certain brand of DVD player is 3,500/wk when the unit price is $460. For each decrease in unit price of $20 below $460, the quantity demanded increases by 250 units. The suppliers will not market any DVD players if the unit price is $400 or lower. But at a unit price of $445, they are willing to make available 500 units in the market. The supply equation is also known to be linear. Find the equilibrium quantity and the equilibrium price.

A) equilibrium quantity 2,000 units; equilibrium price $585
B) equilibrium quantity 400 units; equilibrium price $585
C) equilibrium quantity 2,000 units; equilibrium price $580
D) equilibrium quantity 400 units; equilibrium price $580