SOLUTION: Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given. Supply: p=140q Demand: p= -q^2+12,000 The equilibrium quant

Algebra ->  Finance -> SOLUTION: Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given. Supply: p=140q Demand: p= -q^2+12,000 The equilibrium quant      Log On


   

Question 1154435: Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given.
Supply: p=140q Demand: p= -q^2+12,000
The equilibrium quantity is q= ____ at price p= $____
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!


given:
Supply:
p=140q ........eq.1
Demand:
p=+-q%5E2%2B12000........eq.2
equilibrium is when Supply=Demand

140q+=-q%5E2%2B12000.......solve for q
q%5E2%2B140q+-12000=0
q%5E2-60q%2B200q+-12000=0
%28q%5E2-60q%29%2B%28200q+-12000%29=0
q%28q-60%29%2B200%28q+-60%29=0
%28q+-+60%29+%28q+%2B+200%29+=+0
=> q=60 or q=-200 ( disregard negative solution)
go to
p=140q ........eq.1, substitute q
p=140%2A60
p=8400

The equilibrium quantity is q=60 at price p=$8400