Question

The demand equation for kitchen ovens is given by the equation

Answer 1

Answer:

The equilibrium point is (3, 3620)

Step-by-step explanation:

We set the supply and the demand equation equal to each other and solve:

$-338q+4634=400q^2+20\\400q^2+338q-4614=0$

We can solve by factoring:

$2(q-3)(200q+769)=0$

Setting each factor equal to zero we get:

$q=3\text{ or }q=\displaystyle-\frac{769}{200}$

Only a positive quantity makes sense, so q=3 is the equilibrium quantity.

To get the equilibrium price we just plug 3 in place of q in any of the functions. Let us use the demand function which is easier to handle:

$D(3)=-338(3)+4634=3620$

Therefore the equilibrium price is p=3620

In ordered pair form the equilibrium point is (3, 3620)