West Central State College is making holiday wreaths to raise money for a homeless shelter. From past sales experience, it was learned that if the wreaths are priced at $12 apiece, the college will sell 32, but if the price is raised to $24, it will sell only 24. On the other hand, at a price of $12, the college is willing to make only 26 wreaths, but at a price of $24, it will make 30. What price should the college set so that its supply will equal the demand for the wreaths?

West Central State College is making holiday wreaths to raise money for a homeless shelter. From past sales experience, it was learned that if the wreaths are priced at $12 apiece, the college will sell 32, but if the price is raised to $24, it will sell only 24. On the other hand, at a price of $12, the college is willing to make only 26 wreaths, but at a price of $24, it will make 30. What price should the college set so that its supply will equal the demand for the wreaths?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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