116k views
4 votes
In a different market demand is D(p)=80−p, and market supply is S(p)=2p−10. What is the competitive equilibrium price?

User ARtoo
by
8.1k points

1 Answer

5 votes

Final answer:

The competitive equilibrium price in the mentioned market, determined by setting the demand function equal to the supply function and solving for the price ‘p’, is $30.

Step-by-step explanation:

To find the competitive equilibrium price in a market where demand is D(p) = 80 − p, and market supply is S(p) = 2p − 10, we set the demand equal to supply.

D(p) = S(p)
80 − p = 2p − 10.

Now we solve for p by adding p to both sides and adding 10 to both sides:

80 = 3p − 10
90 = 3p
p = 30.

Therefore, the competitive equilibrium price is $30.

User Cheesysam
by
8.1k points

No related questions found