Suppose the price p of bolts is related to the quantity q that is demanded by: $p = 620 - 4 q ^ { 2 }$ where q is measured in hundreds of bolts. Suppose the supply function for bolts is given by $p = 4 q ^ { 2 }$ where q is the number of bolts (in hundreds) that are supplied at price p. Find the equilibrium price.
A) $620
B) $310
C) $9
D) $325

Question

Quizplus · Accepted Answer

At equilibrium, demand equals supply, so set $620 - 4q^2 = 4q^2$. Solving gives $620 = 8q^2$, so $q^2 = 77.5$. Substituting back into either equation gives $p = 4(77.5) = 310$.

Suppose the Price P of Bolts Is Related to the Quantity