Question

The supply and demand for a product are related to price by the following​ equations, where y is the​ price, in​ dollars, and x is the number of​ units, in thousands. Find the equilibrium point for this product. yequals​S(x)equals300plus40x yequals​D(x)equals4300minus40x

Answer 1

The equilibrium point for the product (x,y) = (50,2300)

Explanation:

The equilibrium point refers to the point in the demand and supply curves where we have the quantity demanded equals the quantity supplied at a particular price.

From the question, we can identify the following;

S(x) = 300 + 40x

D(x) = 4300 - 40x

Now, at the equilibrium point, S(x) = D(x)

This means that;

300 + 40x = 4300 -40x

80x = 4300-300

80x = 4000

x = 4000/80 = 50

Now, we input the value of x into any of the equation of the demand and supply to get the quantity.

Let’s use S(x) = 300 + 40x = 300 + 40(50) = 300 + 2000 = 2,300

The equilibrium point for the product (x,y) = (50,2300)