Final answer:
The equilibrium price and quantity are determined by setting the demand and supply algebraic equations equal to each other at the point Qd equals Qs. Alternatively, graphing the equations can visually display the equilibrium where the demand and supply curves intersect.
Step-by-step explanation:
The question asks for the determination of equilibrium price and quantity using algebraic equations representing the demand and supply for textbooks. Since the demand quantity (Qd) equals the supply quantity (Qs) at equilibrium, we can set the demand equation QD = 3,500.00 – 30.00P equal to the supply equation QS = -200.00 + 25.00P.
However, the equations provided in the reference are simplified versions for illustrative purposes: Qd = Qs where 16-2P = 2 + 5P. By solving this equation, you can find the equilibrium price and quantity.
Alternatively, you can use graphs to find the equilibrium by plotting both demand and supply curves and identifying the point where they intersect, which represents the equilibrium price and quantity. This graphical method is best suited for those who find visual interpretation easier than algebraic manipulation.
It is essential to note that in the reference given, the algebraic method leads to a different demand-supply intersection from the more complex textbook situation provided, but the process of solving for equilibrium remains consistent. The process involves rearranging and solving the equations for equilibrium where Qd = Qs, and P equates to the price of the textbook.