The market demand curve for a product is given below: QD = 250 – 0.5P(i)Assume that the market is supplied by a monopolist with a constant unit cost equal to $100. Calculate the equilibrium price and quantity.(ii)Now assume that the market is supplied by perfectly competitive firms and that the market supply curve is perfectly elastic at a price equal to $100. Calculate the equilibrium price and quantity.I. Demand curve=250-0.5P 0.5p=250-qp=500-2qSupply curve P=100qAt equilibrium demand =supply100q=500-2q102q=500q=4.9p=490.2 2. Demand curve=250-0.5P0.5p=250-qp=500-2qSupply curve P=100qAt…

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