Find the equilibrium price and equilibrium quantity for the following

1.	Find the equilibrium price and equilibrium quantity for the following functions. Demand: x = 100 – 2p and supply: x = 3p – 50.
Answer» Demand x = 100 – 2p Supply x = 3p – 50 At equilibrium, demand = supply 100 – 2p = 3p – 50 -2p – 3p = -100 – 50 -5p = -150 p = \(\frac{-150}{-5}\) = 30 ∴ Equilibrium price p_E = 30 Supply, x = 3p – 50 Put p = 30, we get x = 3(30) – 50 = 90 – 50 = 40 ∴ Equilibrium quantity x_E = 40

Find the equilibrium price and equilibrium quantity for the following functions. Demand: x = 100 – 2p and supply: x = 3p – 50.

Answer»

Demand x = 100 – 2p

Supply x = 3p – 50

At equilibrium, demand = supply

100 – 2p = 3p – 50

-2p – 3p = -100 – 50

-5p = -150

p = \(\frac{-150}{-5}\) = 30

∴ Equilibrium price p_E = 30

Supply, x = 3p – 50

Put p = 30, we get

x = 3(30) – 50 = 90 – 50 = 40

∴ Equilibrium quantity x_E = 40