SOLUTION: plese helpe me thank s Sub Mart Inc. needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demand function of the product is give

Question 1161744: plese helpe me
thank s

Sub Mart Inc. needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demand function of the product is given as QD=40-2P, while the supply function of the product is given as QS=2P where P is the price, QD is quantity demanded, and QS is quantity supplied. Solve the following demand function is given as: QD=40-2P. Calculate the equilibrium price and quantity.
Answer by MathLover1(20850) (Show Source): You can put this solution on YOUR website!

First of all, you need to know what the and the are.
The is the price at which the quantity demanded equals the quantity supplied.
The is the quantity bought and sold at the .

Now looking at this problem, you are given:
the demand function
and
the supply function

In order to find the ( ), we need:
, namely

so we have the following :
, and solve for ,

->the ( )

so, we get (units), then we plug into either or to find the () :

(units)

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