Question

A certain product has supply and demand functions given by p-80q=100 and p+50q=13100, respectively. What price gives market equilibrium, and how many units are demanded and supplied at this price?

Answer 1

8,100

100

Explanation:

To get the equilibrium price, what we need to do is to equate the equations.

This means 100 + 80q = 13100 - 50q

130q = 13100 - 100

130q = 13000

q = 13000/130 = 100

The equilibrium price is thus:

P + 50q -= 13100

P + 50(100) = 13,100

P + 5000= 13,100

P = 13100 - 5000 = 8,100