Bark Computer Screen

Barks needs some help in completing his market analysis. Therefore, he hires you as a consultant and provides you with the results of his analysis. He has found that the functions for supply and demand in his market are: Qd = 157 – 35P + 12.5Pw + 0.1Y Qs = –120 + 75P – 30Pw + 13PL + 12R Where: Qd = Demand Qs = Supply Pw = Average price of Wides Y = Income in his market PL = Price of labor R = Is the average humidity level measured in hums Create a report answering the following questions: Assume the quantities demanded and supplied are a function of price. Given the following conditions, determine the demand and supply curves for Barks Computer Screens Inc. Pw = $6.00 Y = $1,600.00 PL = $9.00 R = 25 Calculate the market conditions (shortage, surplus, or equilibrium) for Wides if the following price conditions exist in the market: $1.75, $2.10, and $2.70. Determine the market equilibrium conditions in this market for Wides. Summarize your recommendations or advice to Barks concerning market conditions and production levels.