Problema Solution
Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given.
Supply: p=70q Demand: p=−q2+6,000
Answer provided by our tutors
Quantity supplied is equal to quantity demanded:
70q = -q^2 + 6000
q^2 + 70q - 6000 = 0
........
click here to see the equation solved for q
........
q = 50
We need to ignore the negative solution -120 since the quantity can not be negative.
The equilibrium quantity is 50.
The equilibrium price is: 70*50 = $3500.