SOLUTION: Retailers will buy 12 cordless phones if the price is $52, and each will buy 16 if the price is $48. The wholesaler will supply 13 phones at $47 each and 15 at $53 each. Assuming t

Question 1162036: Retailers will buy 12 cordless phones if the price is $52, and each will buy 16 if the price is $48. The wholesaler will supply 13 phones at $47 each and 15 at $53 each. Assuming the supply and demand functions are linear, find the market equilibrium point.
Answer by greenestamps(13216) (Show Source): You can put this solution on YOUR website!

Let x be the number of phones and y be the price.

Demand: (12,52) and (16,48)

The slope is -1 (a decrease of 4 in the price (y) causes an increase of 4 in the number of phones (x); -4/4 = -1).

Use either point to find the demand equation

Supply: (13,47) and (15,53)

The slope is 3 (an increase of 6 in the price (y) causes an increase of 2 in the number of phones (x); 6/2 = 3).

Use either point to find the supply equation

Equilibrium is when the supply and demand are equal:

demand:
supply:

Market equilibrium is 14 phones at $50 each.

RELATED QUESTIONS
A group of retailers will buy 104 televisions from a wholesaler if the price is $500 and... (answered by solver91311)

Johnny can't decide which size pizza to order. The 10inch cheese and sausage pizza is... (answered by scott8148)

A group of wholesalers will buy 50 dryers per month if the price is R200 and 30 per month (answered by Theo)

A shop sells calculators and phones. 2/3 of the calculators is equal to 6/11 of the... (answered by greenestamps)

Word Problems: Growth and Decay Question: Ley needs to replace her car. If she leases a... (answered by jorel1380)

Eric has enough money to buy 24 chocolate bars. If the price of each chocolate bar is... (answered by josgarithmetic)

Leslie wants to buy a lamp that is on sale for 15% off marked price. if the marked price... (answered by lynnlo,Alan3354)

Linear Equation Problem Cookies are on sale! Today each cookie costs $0.75 less than the (answered by josmiceli)

A telephone company manufactures two diffrent models of phones: Model 120 is cordless and (answered by Theo)