Question

For the pair of supply-and-demand equations, where x represents the quantity demanded in units of 1000 and p is the unit price in dollars, find the equilibrium quantity and the equilibrium price.

p = −0.3x + 6 and p = 0.05x + 2.5
equilibrium quantity
units
equilibrium price $

Answer 1

9514 1404 393

Answer:

(x, p) = (10, 3)

Explanation:

Equating the expressions for p, we have ...

-0.3x +6 = 0.05x +2.5

3.5 = 0.35x . . . . . add 0.3x-2.5

10 = x . . . . . . . . . . divide by 0.35

p = -0.3(10) +6 = 3

The equilibrium quantity is 10 units.

The equilibrium price is $3.