Question

If the supply function for pickup bed inserts is p - q = 23 and

the demand function is q(5p-5) = 7800, find the market equilibrium
point. (q,p)

Answer 1

To find the market equilibrium point, we need to solve the system of equations formed by the supply and demand functions. The intersection of the supply and demand curves gives us the equilibrium point, represented by the values (q, p).

Step-by-step explanation:

The market equilibrium point represents the intersection of the supply and demand curves. To find the equilibrium point, we need to solve the system of equations formed by the supply and demand functions. We are given the supply function as p - q = 23 and the demand function as q(5p-5) = 7800.

Substituting the supply function into the demand function, we get (p - 23)(5p - 5) = 7800. Simplifying and rearranging the equation, we get 5p^2 - 120p + 595 = 0.

Solving this quadratic equation using factoring, completing the square, or the quadratic formula will give us the values of p. Substituting these values into the supply function will give us the corresponding values of q. The point (q, p) where the supply and demand curves intersect represents the market equilibrium point.