Linear Equations

Question

The price per unit p and the demand x for a particular material are related by the linear equation p=140-7/8x, while the supply is given by the linear equation p=7/8x. At what value of p does supply equal demand?

Answer 1

In order for supply to match the demand we we need to first equate the two equations that are given

 

140 - 7x / 8 = 7x/8

 

14x/8 = 140

 

x = 10 * 8 

 

= 80

 

now substitute this value for x to find p

 

7 / 8 * 80

 

= 70

 

thats the value of p for which the supply matches demand