Question
If the equation for the demand curve is Q= 429 -14P and the equation for the supply curve is Q= 167 +18P then the equilibrium value quantity is
Answers
GPT 3.5
found by setting the demand equal to the supply:
429 - 14P = 167 + 18P
Rearranging the equation:
429 - 167 = 18P + 14P
262 = 32P
P = 262/32
P = 8.19
Now that we have the equilibrium price, we can find the equilibrium quantity by plugging this value back into either the demand or supply equation. Let's use the demand equation:
Q = 429 - 14(8.19)
Q = 429 - 114.66
Q ≈ 314.34
So, the equilibrium quantity is approximately 314.34.
429 - 14P = 167 + 18P
Rearranging the equation:
429 - 167 = 18P + 14P
262 = 32P
P = 262/32
P = 8.19
Now that we have the equilibrium price, we can find the equilibrium quantity by plugging this value back into either the demand or supply equation. Let's use the demand equation:
Q = 429 - 14(8.19)
Q = 429 - 114.66
Q ≈ 314.34
So, the equilibrium quantity is approximately 314.34.