Question

Max's T-shirt business uses the demand function P = -Q + 34 and the supply function P = Q - 10. According to these functions, what will the equilibrium point be for Max's T-shirt business (i.e., the number of T-shirts sold and the price at which they're sold)?

Answer 1

Answer: (8,20)

Explanation:

Answer 2

Equilibrium is when demand and supply are equal so, equate both the functions then,

-Q + 34 = Q - 10

2*Q = 44

Q = 22 Substitute Q in either of the equations.

P = Q - 10 => P = 22 - 10

So, P = 12 and Q = 22.

Hope it helps.