Question

Below are the supply and demand equations for blenders in a certain market. In these equations, p represents price, D represents demand, and S represents supply.

What is p at the point of equilibrium, to the nearest tenth?
a.
56.0
b.
43.3
c.
37.4
d.
36.7

Answer 1

B

Explanation:

The point of equilibrium is the point where demand = supply.

We just equate the supply and demand equations and solve for p.

`D=S\\-(5)/(8)p+35=(6)/(5)p-44\\35+44=(6)/(5)p+(5)/(8)p\\79=(73)/(40)p\\p=(79)/((73)/(40))\\p=(3160)/(73)=43.29`

Rounding to nearest tenth, p = 43.3

Answer choice B is right.

Answer 2

The value of p at equilibrium will be given as follows:
D=-5/8p+35
S=6/5p-44
therefore at equilibrium we shall have:
6/5p-44=-5/8p+35

solving for p we get:
6/5p+5/8p=35+44
p=3160/73
p=43.288~43.3
Answer: b. 43.3