Question

Find the equilibrium point for the pair of demand and supply functions. Here q represents the number of units​ produced, in​ thousands, and x is the​ price, in dollars. ​Demand: qequals=59005900minus−6060x ​Supply: qequals=400400plus+5050x

Answer 1

Q = 2,900 units

x = $50

Explanation:

At the equilibrium point the quantity demanded and supplied at the equilibrium price are the same. The demand and supply functions are:

`D: Q=590 - 60x\\S: Q=400+50x`

When the quantity is the same, the selling price x is:

`5900 - 60x=400+50x\\x=(5,500)/(110)\\ x=\$50`

And the equilibrium quantity is:

`Q = 400+50*50\\Q=2,900\ units`