Determining Equilibrium Quantity in the Com Flakes Market

How can we determine the quantity of Kellogg's Corn Flakes sold in the market?

Given the demand and supply equations, what steps should be taken to find the equilibrium quantity?

Answer:

The quantity of Kellogg's Corn Flakes sold will be 13 boxes.

When analyzing the market for Com Flakes, we can determine the quantity of Kellogg's Corn Flakes sold by finding the equilibrium point where the demand and supply curves intersect. This point indicates the quantity at which the quantity demanded equals the quantity supplied.

First, we set the demand equation (P=28-Q) equal to the supply equation (P=2+Q). By solving for Q, we find that the equilibrium quantity of Com Flakes is 13 boxes. This means that 13 boxes of Kellogg's Corn Flakes will be sold in the market.

Since consumers are indifferent between generic and Kellogg's Corn Flakes in this scenario, the quantity of Kellogg's Corn Flakes sold aligns with the equilibrium quantity of 13 boxes. This equilibrium quantity plays a crucial role in identifying market dynamics and ensuring a balance between demand and supply.