Answer: a. Equilibrium Price= 10
b. Equilibrium quantity= 1000
Explanation:
Suppose that the quantity supplied s and quantity demanded d of baseball caps at major league game are given by the functions s(p)=1,800-80p and D(p)=100p, where p is the price
A. Find the equilibrium price for the caps at the game. B) Find the equilibrium quantity.
A. The equilibrium price is the price gotten when the demand equals to the supply. This will be:
S(p)=1,800-80p
D(p)=100p
S(p) = D(p)
1,800-80p = 100p
100p + 80p = 1800
180p = 1800
p = 1800/180
p = 10
Equilibrium Price is 10
B. To find the equilibrium quantity goes thus:
S(p)=1,800-80p
= 1800 - 80(10)
= 1800 - 800
= 1000
D(p)=100p
= 100 × 10
= 1000
The equilibrium quantity is 1000.