Question

The demand for XPTO sunglasses is given by D(p)=100-2 p and the supply curve is given by S(p)= 3 p . (a) Compute the equilibrium price and equilibrium quantity

Answer 1

The equilibrium price for XPTO sunglasses is $20, and the equilibrium quantity is 60 sunglasses, computed by setting demand equal to supply and solving for price and quantity.

Step-by-step explanation:

To compute the equilibrium price and equilibrium quantity for XPTO sunglasses, we set the demand function, D(p) = 100 - 2p, equal to the supply function, S(p) = 3p. Solving for p gives us the equilibrium price.Equating the two functions:Now, we substitute the equilibrium price back into either the demand or supply function to find the equilibrium quantity.So, the equilibrium quantity is 60 sunglasses.Therefore, the equilibrium price is $20, and the equilibrium quantity is 60 sunglasses.