Question

Suppose the demand function​ (D) for golf clubs​ is: Qequals150minus1.00​P, where P is the price paid by consumers in dollars per club and Q is the quantity demanded in thousands. Suppose the supply curve​ (S) for golf clubs is estimated to​ be: Qequals1.00P. Calculate the equilibrium price for golf clubs and the equilibrium quantity sold. The equilibrium price is ​$ nothing per club ​(Enter your response as an​ integer.)

Answer 1

Answer:

P = $75 per club

n= 75,000 clubs

Explanation:

The demand and supply functions are:

$(D): Q=150-1.00P\\(S): Q=1.00P$

The equilibrium price is the price that yields a quantity demanded equal to the quantity supplied:

$150-1.00P=1.00P\\P=\frac{150}{2}\\P=\ 75$

The number of units sold at that price is:

$n=1,000*(1.00*75)\\n=75,000\ units$