Solve the problem.
-Assume that the price per unit d of a certain item to the consumer is given by the equation d = 35 - .10x,where x is the number of units in demand.The price per unit from the supplier is given by the equation s = .2x + 20,where x is the number of units supplied.Find the equilibrium price and the equilibrium quantity.
A)equilibrium price: $35 per unit; equilibrium quantity: 50 units
B)equilibrium price: $50 per unit; equilibrium quantity: 30 units
C)equilibrium price: $30 per unit; equilibrium quantity: 50 units
D)equilibrium price: $20 per unit; equilibrium quantity: 50 units

Question

Quizplus · Accepted Answer

Equilibrium occurs when the quantity demanded equals the quantity supplied.
Set d = s and solve for x:
35 - .10x = .2x + 20
.30x = 15
x = 50
Substitute x = 50 into either d or s (both give the same result) to find the equilibrium price:
d = 35 - .10(50) = $30 per unit
Therefore, the equilibrium price is $30 per unit and the equilibrium quantity is 50 units, which is option C.

Solve the Problem. -Assume That the Price Per Unit D of a Certain