Question

The supply and demand for a product are related to price by the following​ equations, where y is the​ price, in​ dollars, and x is the number of​ units, in thousands. Find the equilibrium point for this product. y=300+50x y = 13800-40x
The equilibrium point is (150,7800).

Answer 1

Answer: Equilibrium Price = $7800

Explanation:

Given that,

y = 300 + 50x

y = 13800 - 40x

where,

y represents the price in dollars and x represents the number of units

Equilibrium point is where both the equations are equal,

300+50x = 13800-40x

90x = 13500

x = $\frac{13500}{90}$

x = 150 units

y = 300 + 50 × 150

y = $7800

(x,y) = (150, 7800)

Therefore,

Equilibrium Price = $7800