The demand equation for a certain brand of GPS Navigator is x + 3p - 565 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars.

Question

The supply equation is x - 16p + 480 = 0, where x is the quantity the supplier will make available in the market when the wholesale price is p dollars each. Find the equilibrium quantity and the equilibrium price for the GPS Navigators.


a. equilibrium quantity 2,000 units; equilibrium price $55

b. equilibrium quantity 2,000 units; equilibrium price $40

c. equilibrium quantity 400 units; equilibrium price $55

d. equilibrium quantity 400 units; equilibrium price $40

thank you

Answer 1

demand=supply
is x + 3p - 565=x - 16p + 480
19p=1045
p=$55

Now for quanitity
x - 16p + 480 = 0
x=16(55)-480= 400 units