The equilibrium price is where the two lines meet, namely when the number of units the manufacturer is willing to sell equals the number of units the retailer is willing to buy, both at price p.
So
20p-1500=x=-4p+900
Solve for p to get p=100 (and x=500)
Solve by using a system of equations.
The number x of MP3 players a manufacturer is willing to sell is given by x = 20p − 1500, where p is the price, in dollars, per MP3 player. The number x of MP3 players a store is willing to purchase is given by x = −4p + 900, where p is the price per MP3 player. Find the equilibrium price.
$
1 answer