Question

Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given. Supply:p=120q Demand: p= - q2 +16,000 The equilibrium quantity is q = ------------ at price p= $ -------------.

Answer #1

Supply:p=120q

Demand: p= - q^{2} +16,000

We know equilibrium get established when Demand equate Supply

So

120q = - q^{2} +16,000

= q^{2}+120q-16000 =0

By using quadratic formula we got **q=80**

**So**

**Equilibrium price=9600**

**Equilibrium quantity=80**

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