A few days ago
How in the world do you do this?
The demand and supply equations for a certain item are given by
D = –5p + 40
S = –p^2 + 30p – 8
Find the equilibrium price
Top 1 Answers
A few days ago
Favorite Answer
“Equilibrium price is the price at which the quantity demanded of a good or service is equal to the quantity supplied.” In other words, when D = S. I’m guessing ‘p’ is the price, so:
D = S
=> –5p + 40 = –p^2 + 30p – 8
=> p^2 – 5p – 30p + 40 + 8 = 0
=> p^2 – 35p + 48 = 0
Now use the quadratic formula to solve for the price, p:
p = [-b +/- √(b^2 – 4ac)] / 2a
=> p = {35 +/- √[(-35)^2 – 4(1)(48)]} / 2(1)
=> p = 33.57 or 1.43
Therefore, the equilibrium price should be $33.57, (in whatever currency you’re working with), since $1.43 would yield a negative supply and demand.
0
- Academic Writing
- Accounting
- Anthropology
- Article
- Blog
- Business
- Career
- Case Study
- Critical Thinking
- Culture
- Dissertation
- Education
- Education Questions
- Essay Tips
- Essay Writing
- Finance
- Free Essay Samples
- Free Essay Templates
- Free Essay Topics
- Health
- History
- Human Resources
- Law
- Literature
- Management
- Marketing
- Nursing
- other
- Politics
- Problem Solving
- Psychology
- Report
- Research Paper
- Review Writing
- Social Issues
- Speech Writing
- Term Paper
- Thesis Writing
- Writing Styles