Suppose the price p of bolts is related to the quantity q that is demanded by: $p = 500 - 5 q ^ { 2 }$ where q is measured in hundreds of bolts. Suppose the supply function for bolts is given by $p = 5 q ^ { 2 }$ where q is the number of bolts (in hundreds) that are supplied at price p. Find the equilibrium supply.
A) About 636 bolts
B) About 778 bolts
C) About 707 bolts
D) About 7 bolts

Question

Quizplus · Accepted Answer

To find the equilibrium supply, we set the demand function equal to the supply function: $500 - 5q^2 = 5q^2$. Solving for $q^2$, we get $q^2 = 50$, so $q = \sqrt{50}$ or about 7.07 hundreds of bolts, which translates to about 707 bolts.

Suppose the Price P of Bolts Is Related to the Quantity