The demand equation for a certain type of printer is given by
D = -200p + 35,000
The supply equation is predicted to be
S = -p^2 + 400p – 20,000
Find the equilibrium price:
This is what I have come up with but I don't know which one is the right price:
D = S , solve for p
-200p + 35,000 = -p^2 + 400p – 20,000
p^2 - 600p + 15,000 = 0
p = 112.92
p = 487.08
Which one is the equilibrium price??
2007-08-20 06:50:38 · 5 answers · asked by casper5 3 in Science & Mathematics ➔ Mathematics
p=112.92
If you use 487.08, the demand equation and the supply equation are both negative. A negative supply and a negative demand is certainly not the answer you are seeking. Graphing the two equations will make that clear.
2007-08-20 07:02:52 · answer #1 · answered by skipper 7 · 0⤊ 0⤋
When I graph the two lines, I get an equilibrium at p~80.
2007-08-20 13:56:17 · answer #2 · answered by gebobs 6 · 1⤊ 1⤋
larger p gives negative values of D and S. So only 112.92 is meaningful.
2007-08-20 14:01:16 · answer #3 · answered by John V 6 · 1⤊ 0⤋
the lower price is the one. in a free-market economy, supply & demand is always driven by the lower price !
2007-08-20 13:57:27 · answer #4 · answered by vlee1225 6 · 1⤊ 1⤋
p=487.08
2007-08-20 13:58:22 · answer #5 · answered by Mr. "Diamond" 6 · 0⤊ 2⤋