Question

A certain product has supply and demand function given by p=60q+200

Answer 1

The question is completed as thus:

p=5300 - 60q, respectively.

What price gives market​ equilibrium, and how many units are demanded and supplied at this​ price?

Answer:

The equilibrium price is $2750 and the equilibrium quantity is 42.5

Explanation:

Give

Supply Function

`p=60q+200`

Demand Function

`p=5300 - 60q`

Required: Determine the equilibrium price and quantity

To do this, we equate both functions

`p = p`

`60q + 200 = 5300 - 60q`

Collect Like Terms

`60q +60q = 5300 - 200`

`120q = 5100`

Make q the subject

`q = (5100)/(120)`

`q = 42.5`

Substitute 42.5 for q in
`p=60q+200`

`p = 60 * 42.5 + 200`

`p = 2550 + 200`

`p =2750`

Hence, the equilibrium price is $2750 and the equilibrium quantity is 42.5