Raymond B. answered 04/14/22
Math, microeconomics or criminal justice
D = S
e^-.002p = 150e^.004p
150 = (e^-.002p(/(e^.004p)
= e^(-.002 -.004)p = e^(-006)p
150 = e^(-.006)p
ln150 = -.006p
p = ln150/-.006= about -5.011/.006 = -$8.35.
If price per CD is negative $8.35, then the market clears
but this means the consumer has to be paid to "buy" the CDs, and the producer has to accept an $8.35 loss on each CD
while the Supply Curve is upward sloping and the Demand Curve is downward sloping, their y intercepts seem reversed, and a little strangely Fishy.
Maybe the problem really was meant to be:
Supply Curve S(p) =e^-.004p with Demand curve D(p) = 150e^-.002p
then 150e^-.002p = e^004p
150 = e^.004p/e^-.002p
= e^.002p
p = 150/e^.002 = 149.7
equilibrium price = about $1.50 per CD