Question

The clemand equation for milk is p = 34.487 -0.21x, and the supply equation is p = 0.088x, where pis the price in dollars per hundred pounds and x is the amount of milk measured in billions of pounds. Find the equilibrium point. (Round your answers to two decimal places.) billions of pounds of milk will be sold at $ per hundred pounds.

Answer 1

The equilibrium point is (115.73, 10.18)

115.73 billions of pounds of milk will be sold at $10.18 per hundred pounds.

Explanation:

Consider the provided equation.

The demand equation for milk is
`p=34.487-0.21x`

The supply equation is
`p=0.088x`

To find equilibrium point equate the equation as shown:

`34.487-0.21x=0.088x`

`34.487=0.088x+0.21x`

`34.487=0.298x`

`x\approx115.73`

Now substitute the value of x in
`p=0.088x`

`p=0.088(115.73)`

`p=10.18`

Hence, the equilibrium point is (115.73, 10.18)

115.73 billions of pounds of milk will be sold at $10.18 per hundred pounds.