Find the equilibrium point for the following supply and demand functions below, where p is price per unit and q is the number of units produced and sold.
Demand: Supply:

Question

Find the equilibrium point for the following supply and demand functions below, where p is price per unit and q is the number of units produced and sold. ​
Demand:  Supply:  ​

Quizplus · Accepted Answer

To find the equilibrium point, we need to find the point at which the demand and supply functions intersect. We can do that by setting the two functions equal to each other and solving for q:

11ea984b_afe3_4e9e_9029_a528b45e3867_TB4005_11 = 11ea984b_afe3_4e9f_9029_6d8686f2811c_TB4005_11

-400p + 8000 = 200p + 2000

-600p = -6000

p = 10

Now we can substitute this value of p back into either the demand or supply function to find the corresponding quantity:

Qd = 800 - 40p

Qd = 800 - 40(10) = 400

Therefore, the equilibrium point is (q,p) = (400,10).

The only answer choice that gives this point is D, so D is the best choice.

Find the Equilibrium Point for the Following Supply and Demand