Problema Solution
The supply function for a certain thing 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
Supply=Demand
q^2 + 40 q = -3 q^2 + 20 q + 7200
4q^2 +20q -7200 = 0
q=40
So the equilibrium quantity is q=40, the equlibrium price is $3200