Question
If the supply function for a company is p = q^2 + 8q +16 and the demand function is p = -3q^2 + 6q + 36. Find the equilibrium quantity and equilibrium price.
Answers
Damon
p = p so
q^2 + 8 q + 16 = -3q^2 + 6q + 36
4 q^2 + 2 q - 20 = 0
2 q^2 + q - 10 = 0
(2 q + 5 ) (q - 2) = 0
so q = 2 is the positive root
now go back and find p
q^2 + 8 q + 16 = -3q^2 + 6q + 36
4 q^2 + 2 q - 20 = 0
2 q^2 + q - 10 = 0
(2 q + 5 ) (q - 2) = 0
so q = 2 is the positive root
now go back and find p