The demand for pickles is given by p = 167

Question

The demand for pickles is given by p = 167 - 3q and the supply is given by p = 5 + 6q.What is the equilibrium quantity?
A)15
B)23
C)113
D)18
E)None of the above.

Quizplus · Accepted Answer

At equilibrium, demand equals supply.

p F1F1F1S1  F1F1F1S1F1F1F10 5 F1F1F1S1F1F1F10 6q

F1F1F1(S1) (167-3q) = F1F1F1(S1) (5+6q)

167-3q = 5+6q

8q = 162

q = 20.25

We cannot produce a fraction of a pickle, so we must round down to get 20, which is closest to answer choice D of 18.