Problema Solution
The supply function for a certain commodity is q^2 + 40 q and the demand function is -3 q^2 + 20 q + 7200.
Find the equilibrium quantity and equlibrium price.
Answer provided by our tutors
The equilibrium quantity is when both eqations are equal to each other
q^2 + 40q = -3q^2 + 20q +7200
4q^2 + 20 q - 7200 = 0
solving equation we get value of q = 40,-45
we neglect the negative value and value of q comes out to be 40
which is our euilibrium quantity