Question

Solve supply and demand problems using linear functions

Question
The demand function for ice creams is given by
ous
and the supply function is
D(q) = 25 - 3q,
S(q) = 2q,
where q is the number of ice creams in supply, in thousands. What is the value of D(q) at equilibrium? Give your ar
an integer.
Provide your answer below:

Answer 1

The equilibrium occurs at q = 5 and the demand at equilibrium is 10.

Step-by-step explanation:

The demand and supply functions for ice creams are given by D(q) = 25 - 3q and S(q) = 2q, respectively. To find the equilibrium, we need to set the demand and supply functions equal to each other and solve for q. Setting D(q) equal to S(q) gives us:

25 - 3q = 2q

5q = 25

q = 5

The equilibrium occurs at q = 5. To find the value of D(q) at equilibrium, we substitute q = 5 into the demand function:

D(5) = 25 - 3(5) = 25 - 15 = 10

Therefore, the value of D(q) at equilibrium is 10.

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