The demand and supply equation for a certain item are given by
D = – 5 p + 40
S = – p2 + 30 p – 8
Find the equilibrium price.
2007-04-22 18:43:31 · 3 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
solve for their intersection: -5p+40=-p^2+30p-8
0=-p^2+35p-48 or 0=p^2-35p+48
so, using the quadratic equation, p=33.57 or p=1.42. I think you would have to look at a cost function to dertimine which is better.
2007-04-22 18:52:02 · answer #1 · answered by bruinfan 7 · 0⤊ 1⤋
Equilibrium price just means to find where the two graphs intersect. Graph D and then Graph S and you'll have it.
(also you could just set the two equations = to each other)
-5p+40=-p^2 +30p-8 => 0=p^2-35p+48
Use quadratic equation to solve: a=1, b=-35, c=48
(-(-35)+ sqrt(-35^2-4(1x48))/(2*1) = 33.57
(-(-35)- sqrt(-35^2-4(1x48))/(2*1) = 1.43
Plug in to check... 33.57 is negative price... not valid...
1.43 works... answer is 1.43
2007-04-22 18:47:59 · answer #2 · answered by nishi 4 · 0⤊ 0⤋
set D = S, then solve for p ...
2007-04-22 18:49:47 · answer #3 · answered by shamu 2 · 0⤊ 0⤋