Question

Find the equilibrium point for the pair of demand and supply functions. Here q represents the

Answer 1

The equilibrium point for the pair of demand and supply function is 100

We have been two linear function, one is linear supply function and other is linear demand function.

In general , linear supply function is given as:

                            Qs = x + yP

                       Where , Qs = quantity supplied

                                        x = quantity

                                        P = price

And linear demand function is given is :

                             Qd = x + yP

                      Where , Qs = quantity supplied

                                        x = quantity

                                        P = price

According to the question,

                   Linear supply function is q = 300 + 5x

          And  linear demand function is q = 4800 – 40x

To find the equilibrium point we will put two quantities equal, that is,

                                 Qs = Qd

                      300 + 5x = 4800 – 40x

                        5x + 40x = 4800 – 300

                          45x = 4500

                             x =  100

Hence the equilibrium point is 100

Learn more about equilibrium point here : brainly.com/question/1915798

#SPJ9