Solve the problem.
-Suppose that the quantity supplied S and quantity demanded D of baseball caps at a major league game are given by the functions S(p) = 5,000 - 100p and D(p) = 150p, where p is the price. Find the equilibrium price for
Caps at the game. Then find the equilibrium quantity.
A) $20, $3,000
B) $33, $1,700
C) $50, $0
D) $50, $3,000

Question

Quizplus · Accepted Answer

The equilibrium price occurs when quantity supplied equals quantity demanded: 5,000 - 100p = 150p. Solving for p gives p = $20. Substituting p = $20 into either function gives the equilibrium quantity: 3,000 caps.

Solve the Problem. -Suppose That the Quantity Supplied S and Quantity Demanded D