Question

The demand for a product is given by p+5q= 380 or, q = (380-p)/5 and the supply for this product is given by p-3q = 172 or, q = (p-172)/3 The price at which the quantity demande

Answer 1

The equilibrium price is $250.

The equilibrium quantity is 26 units.

Explanation:

To find the equilibrium price, we need to find the price at which the quantity demanded equals the quantity supplied. This occurs when q (quantity demanded) equals q (quantity supplied).

So, we can set the two equations for q equal to each other:

(380-p)/5 = (p-172)/3

To solve for p, we can cross-multiply and simplify:

3(380-p) = 5(p-172)

1140 - 3p = 5p - 860

1140 + 860 = 8p

2000 = 8p

p = 250

Therefore, the equilibrium price is $250. We can plug this value back into either equation for q to find the equilibrium quantity.

Using q = (380-p)/5, we get:

q = (380-250)/5 = 26

So the equilibrium quantity is 26 units.