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2. At $2.50 per cupcake, the supply is 370 cupcakes and the demand is 400 cupcakes. When the price rises to $3.00, the supply increases to 390 cupcakes and the demand falls to 360 cupcakes.

a. Find the price-supply equation

p mx b = +


b. Find the price-demand equation

p mx b = +


c. Find the equilibrium price and quantity


3. A candle manufacturer has a monthly fixed cost of $3,600. Each candle costs $1.50 to produce. The manufacturer sells the candle for $4.50 per candle.


a. Find the cost function


b. Find the revenue function


c. Find the break-even point