Question

Core: 0 of 1 pt

Answer 1

Answer:

  145.39

Step-by-step explanation:

The ratio of supply to demand will be 1 at the equilibrium price:

  S(p)/D(p) = 1 = 140e^(0.005p)/(448e^(-0.003p))

  448/140 = e^(0.005p -(-0.003p)) = e^(0.008p)

  ln(448/140) = 0.008p . . . . . . . . . taking the natural log

  p = ln(448/140)/0.008 ≈ 145.39

The equilibrium price is about $145.39.