The demand curve for knobs is P = 75 - 6Q_D and the supply curve for knobs is P = 35 + 2Q_S.What is the equilibrium price of a knob?

Question

Quizplus · Accepted Answer

To find the equilibrium price, set the demand curve equal to the supply curve and solve for P. The demand curve is P = 75 - 6Q and the supply curve is P = 35 + 2Q. Setting them equal: 75 - 6Q = 35 + 2Q, which simplifies to 8Q = 40, so Q = 5. Substituting Q back into either the demand or supply equation (let's use the demand equation), P = 75 - 6*5 = 75 - 30 = 45. Therefore, the equilibrium price is $45.

The Demand Curve for Knobs Is P = 75 -