A supply function has the equation is , and the demand function is decribed by the equation . Algebraically determine the equilibrium point for the supply and demand functions. Round your answer to two decimal places.

Question

A supply function has the equation is  , and the demand function is decribed by the equation  . Algebraically determine the equilibrium point for the supply and demand functions. Round your answer to two decimal places. ​

Quizplus · Accepted Answer

To find the equilibrium point, we need to find the quantity at which the supply and demand functions are equal. 
Setting the two equations equal, we get:
21 - 0.5p = 0.5p + 5
Simplifying and solving for p, we get:
p = 16
To find the equilibrium quantity, we can substitute this value of p into either the supply or demand equation. Using the demand equation, we get:
q = 21 - 0.5(16) = 13
Therefore, the equilibrium point is (16,13). Rounded to two decimal places, this is (16.00, 13.00), which corresponds to choice D.

A Supply Function Has the Equation Is , and the Demand