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Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are...

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=​ $ -------------.

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Homework Answers

Answer #1

Supply:p=120q

Demand: p= - q2 +16,000

We know equilibrium get established when Demand equate Supply

So

120q = - q2 +16,000

= q2+120q-16000 =0

By using quadratic formula we got q=80

So

Equilibrium price=9600

Equilibrium quantity=80

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