Determine the equilibrium price and quantity

Question

a)  At a unit price of Ksh.16000, the demand of a product is 300 units and at a unit price of Ksh.48000 the demand is 100 units. At a unit price of Ksh.30000 the supply is 550 units and at a unit price of Ksh.50000 the supply is 650 units.

Determine the equilibrium price and quantity           

Answer 1

16,000 = P = TR/x when x = 300. Graphically that's the point (3,16) where the y value is in units of one thousand, and x units are measured in units of a hundred.

48,000 = P when x = 100. That's the point (1,48)

that's 2 points on the demand curve

50,000 = P when x =650. The point (6.5,30) That's a point on the supply curve

Plot the demand points and try to draw a line through them.

equilibrium price is where that line intersects the supply curve, but you don't have enough information to draw a supply line.

All you can say is the equilibirum P is between 0 and 50 thousand Ksh

0 < P < 50,000 Ksh

Best guess or estimate might be in the middle somewhere: 25,000 Ksh

this all assumes the demand curve is linear. But you don't have enough information to derive a demand curve unless it is linear