Question

Let p denote the current market price for widgets and let x denote a quantity of widgets. The price per widget and the daily supply of widgets are related by the following Supply Equation: p = 0.16x + 16. The price per widget and the daily demand for widgets are related by the following Demand Equation: p = –0.09x + 29. Find the equilibrium price for widgets in the market. Round your answer to two decimal places.

Answer 1

Answer:

$x = 52.00$

Step-by-step explanation:

Given

$Demand: p = 0.16x + 16$

$Supply: p -0.09x + 29$

Required

Determine the equilibrium price

This is determined when Demand = Supply

So:

$0.16x + 16 = -0.09x + 29$

Collect Like Terms

$0.16x + 0.09x = 29 - 16$

$0.25x = 13$

Solve for x

$x = 13/0.25$

$x = 52.00$

Hence; The equilibrium price is when x = 52.00