Question

In a small company selling speakers, the supply function is s(x) = 100x - 50 and the demand function is d(x) = 500 - 20x. What is the equilibrium quantity?

A. 25 units
B. 35 units
C. 45 units
D. 55 units

Answer 1

The equilibrium quantity for the small company selling speakers is 4 units.

Step-by-step explanation:

The equilibrium quantity can be determined by setting the supply and demand functions equal to each other and solving for x:

100x - 50 = 500 - 20x

Combining like terms:

120x = 550

Dividing both sides by 120:

x = 4.58

Since we are dealing with units, we can round down to the nearest whole number:

Therefore, the equilibrium quantity is 4 units.