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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?

User Subsub
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1 Answer

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Answer:

(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)

User Aaron Bennett
by
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