Question

D(p) is the​ price, in dollars per​ unit, that consumers are willing to pay for p units of an​ item, and​ S(p) is the​ price, in dollars per​ unit, that producers are willing to accept for p units. Find the equilibrium point. ​D(p)=3500−20p​, ​S(p)=2500+5p

What are the coordinates of the equilibrium​ point?

Answer 1

(40,2700)

Explanation:

Given

`D(p)=3500-20p`

`S(p)=2500+5p`

Required

The equilibrium point

To do this, we have:

`D(p) = S(p)`

So, we have:

`2500+5p = 3500-20p`

Collect like terms

`20p+5p = 3500-2500`

`25p = 1000`

Divide both sides by 25

`p = 40`

Substitute
`p = 40` in
`D(p)=3500-20p`

`D(40) = 3500 - 20 * 40`

`D(40) = 2700`

Hence, the coordinates of the equilibrium is: (40,2700)