Question

A certain product has supply and demand function given by p=60q+200

Answer 1

The question is completed as thus:

p=5300 - 60q, respectively.

What price gives market​ equilibrium, and how many units are demanded and supplied at this​ price?

Answer:

The equilibrium price is $2750 and the equilibrium quantity is 42.5

Step-by-step explanation:

Give

Supply Function

$p=60q+200$

Demand Function

$p=5300 - 60q$

Required: Determine the equilibrium price and quantity

To do this, we equate both functions

$p = p$

$60q + 200 = 5300 - 60q$

Collect Like Terms

$60q +60q = 5300 - 200$

$120q = 5100$

Make q the subject

$q = \frac{5100}{120}$

$q = 42.5$

Substitute 42.5 for q in $p=60q+200$

$p = 60 * 42.5 + 200$

$p = 2550 + 200$

$p =2750$

Hence, the equilibrium price is $2750 and the equilibrium quantity is 42.5