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spayn [35]
3 years ago
8

A certain product has supply and demand functions given by p equals 40 q plus 300p=40q+300 and p equals 5300 minus 60 q commap=5

300−60q, respectively.
a. if the price p is ​$11001100​, how many units q are supplied and how many are​ demanded?
b. what price gives market​ equilibrium, and how many units are demanded and supplied at this​ price?
Business
1 answer:
lidiya [134]3 years ago
6 0

Answer: a. Qs=20, Qd=70

b. P=$2300, Q=50

Explanation:

a. Supply function: p=40q+300

Demand function: p=5300−60q

When the price is $1100,

Supply=P= 40q+300
1100=40q+300
800=40q
20=qs

Therefore, quantity supplied is 20 units.

Demand=P= 5300 - 60q
1100=5300-60q60q=5300-110060q=4200qd=70

therefore, quantity demand is 70 units.

b. Equilibrium is given by demand = supply

\frac{P-300}{40} =\frac{5300-P}{60}  
6P-1800=21200-4P  10P=23000  P=$2300

Substituting P into the supply equation we get,

p=40q+300
2300=40q_300
2000=40q
50=q

Therefore, equilibrium price is $2300 and quantity is 50 units.

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