Raymond B. answered 02/12/23
Math, microeconomics or criminal justice
1st equation is demand with an inverse relation between price and quantity demanded
2nd equation is the supply curve with a direct relation between price and quantity supplied
solve each for p
then set them equal and solve for q
or solve with substitution elimination or matrix algebra
p=-q/350 + 7000/350 = -q/350 + 20 is the demand curve
p = q/150 + 1350/150 = q/150 + 9 is the supply curve
q/150+9=-q/350 +20
q/150 +q/350 = 20-9
q/15 +q/35 = 110
multiply by 5(7)(3)
7q +3q = 110(105)
q= 11(105) = 1155= equilibrium quantity when sales = purchases, quantity supplied = quantity demanded, and there is no shortage or surplus
p = q/150+9 = 1155/150 +9 = 7.7+9 = $16.70 = equilibrium price
if there's a tax of $3, shift the supply curve up by 3 and set the new supply curve = demand curve
q/150 +9+ 3 = -q/350 +20
q/150 +q/350 = 20-9-3 =8
q/15 +q/35 = 80
multiply by 5(3)(7)
7q+3q =80(5)3)(7)
q= 80(5)(3)(7)/10=8(105)= 840= new equilibrium quantity
p= 840/150 +12= 84/15+12=28/5+12= 5.3+12= $17.30 = new equiibrium orice
supplier passed on 60 cents to the consumer
graphing the lines may help
just shift the supply line vertically up by 3