160k views
2 votes
Find the equilibrium quantity when p = -0.1x² - x + 76 and p = 0.1x² + 2x + 56, where p is measured in dollars and x is measured in units of a hundred.

1 Answer

3 votes

The equilibrium quantity obtained from the equilibrium supply and demand functions is 500 units

The steps by which the equilibrium quantity is obtained can be presented as follows;

The demand and supply functions are presented as follows;

p = -0.1·x² - x + 76

p = 0.1·x² + 2·x + 56

The equilibrium quantity is the quantity at which the demand and supply functions for the price are equivalent. Therefore, at the equilibrium quantity, we get;

-0.1·x² - x + 76 = 0.1·x² + 2·x + 56

0.2·x² + 3·x - 20 = 0;

The division of both sides of the above equation by 0.2 indicates that we get;

(0.2·x² + 3·x - 20)/0.2 = 0/0.2

x² + 15·x - 100 = 0

(x + 20)·(x - 5) = 0

x = -20, and x = 5

Therefore, the equilibrium quantity is 500 units

The possible complete question found through search can be presented as follows;

Market Equilibrium; The weekly demand and supply functions for Sportsman 5 × 7 tents are expressed using the functions in the question;

p = -0.1·x² - x + 76

p = 0.1·x² + 2·x + 56

Respectively, where p is measured in dollars and x is measured in units of a hundred. Find the equilibrium quantity (in hundred units)

User Oligopol
by
7.5k points