Question
The supply function for a product is
2p − q − 50 = 0,
while the demand function for the same product is
(p + 10)(q + 30) = 9600.
Find the market equilibrium point.
2p − q − 50 = 0,
while the demand function for the same product is
(p + 10)(q + 30) = 9600.
Find the market equilibrium point.
Answers
oobleck
that is, of course, when supply = demand.
So solve the system
2p - q = 50
(p+10)(q+30) = 9600
Since q = 2p-50, that gives you
(p+10)(2p-50+30) = 9600
p = 70
so, q = 90
So solve the system
2p - q = 50
(p+10)(q+30) = 9600
Since q = 2p-50, that gives you
(p+10)(2p-50+30) = 9600
p = 70
so, q = 90