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Alecsey [184]
2 years ago
8

Supply function: 2p-q-63 and the demand function: (p+30)(q+25)=2584. What is the market equilibrium point?

Mathematics
1 answer:
KATRIN_1 [288]2 years ago
6 0
Equilibrium is point where supply = demand

Solve with substitution.

From supply equation ---> q = 2p - 63

Sub into demand equation ---> (p+30)(2p-63+25) = 2584

Solve for p:
2p^2 +22p - 1140 = 2584
p^2 + 11p -1862 = 0
(p+49)(p-38) = 0
p = 38

Sub back into supply equation to find q
q = 2(38) - 63
q = 13

Answer: Equilibrium is 13 units sold at price of $38.
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