Question

The value p (price) at which the supply of a crop equals the demand for that crop is called the equilibrium price. The equation for the supply of soy beans is S = 0.3p + 3 The equation for the demand of soybeans is D = -0.5p + 9. Determine the equilibrium price. A) $6.50 B) $6.75 C) $7.00 D) $7.50

Answer 1

What you must do for this case is to match the equation of the supply with the equation of the demand to find the equilibrium price.
We have then that:
S = D
0.3p + 3 = -0.5p + 9
Clearing the value of p we have:
0.3p + 0.5p = 9 - 3
0.8p = 6
p = (6) / (0.8)
p = 7.5 $
Answer:
D) $ 7.50