Equilibrium Questions

From: julietta carpentieri (potato_at_newsguy.com)
Date: 02/17/05 

Date: Wed, 16 Feb 2005 22:48:49 -0600

If a demand table looked like this,

Supplied Price Demanded Surplus or shortage
130 8269.23 110 20
130 8278.46 114 16
130 8038.46 100 30

and the actual cost is 8500 per unit, but the surplus was sold at a
discount 1500 1st year (average price 8269.23), 1800 2nd year (average
price 8278.46) and 2000 the 3rd year (average price 8038.46), would
you take total income and divide by 130 to get the price above, or
would you put 8500 in the price since that is actual?

Would 8500 still be the equilibrium price and 130 be the equilibrium
quantity, even though this was never met?

The more I am looking at this, the more confused I am getting.

Any help would be appreciated. I need to know if I am looking at this
problem the right way.

My boss said that 8038.46 is the equalibrium price/qty, but the demand
has a surplus. I say he is wrong.

Thanks in advance, and if I posted this to the wrong group, I
apologize in advance.

Julie

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