Find the equilibrium quantity and the equilibrium price for calculators.

Question

The demand equation for the TI-83 graphing calculator is x+3p−1008=0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation is x−25p+980=0, where x is the quantity the supplier will make availbale in the market each week when the wholesale price is p dollars each. Find the equilibrium quantity and the equilibrium price for the calculators. Equilibrium quantity= Equilibrium price=

Answer 1

Equilibrium is achieved when the quantity provided equals the quantity demanded. Rearrange the two equations solving for x:

 

x = 1008 - 3p               x = 25p - 980

 

Now:   1008 - 3p = 25p - 980

                 1988 = 22p

                 $90.36 = p

 

x = 1008 - 3(90.36) = 736.92  or x = 737