Question

The quantity demanded each month of Russo Expresso Makers is 250 when the unit price is $136.oo. The quantity demanded each month is 1,2oo when the unit price is $98.00. The suppliers will market 700 espresso makers if the unit price is $58.00 or lower. At a unit price of $74.50, they are willing to make available 2,350 units in the market. Both the demand and supply equations are known to be linear. find the equilibrium quantity and the equilibrium price.

Answer 1

if d(p) and s(p) are the demand and supply functions at price p,

d(136) = 250
d(98) = 1200
d(p) = 3650-25p

s(58) = 700
s(74.50) = 2350
s(p) = 100p - 5100

d(p) = s(p) when p = 70
d(70) = s(70) = 1900