Question

Let's assume the supply function for cases of Pepsi at the local grocery store is S(q)=p= 2q; and the demand function is D(q)=p=1000-.57. What is the equilibrium quantity for cases of Pepsi?

Answer 1

The equilibrium quantity for cases of Pepsi is approximately 388 cases.

Step-by-step explanation:

The equilibrium quantity for cases of Pepsi can be found by setting the supply function equal to the demand function and solving for q:

S(q) = D(q)

2q = 1000 - 0.57q

Combine like terms:

2q + 0.57q = 1000

2.57q = 1000

Divide both sides by 2.57:

q = 1000/2.57 ≈ 388.15

Therefore, the equilibrium quantity for cases of Pepsi is approximately 388 cases.