Question

Find the equilibrium point for the pair of supply and demand functions. Demand: q=18/x Supply: q=x/2

Answer 1

Answer:

The equilibrium point is at x = 6

Step-by-step explanation:

Given

$Demand (q) = \frac{18}{x}$

$Supply (q) = \frac{x}{2}$

Required

Determine the equilibrium point

The equilibrium point is determined by

$Demand = Supply$

Substitute values for Demand and Supply

$\frac{18}{x} = \frac{x}{2}$

Cross Multiply

$x * x = 18 * 2$

$x^2 = 36$

Take positive square root of both sides

$x = 6$

Hence;

The equilibrium point is at x = 6