The demand for pickles is given by p = 131

Question

The demand for pickles is given by p = 131 - 2q and the supply is given by p = 5 + 7q.What is the equilibrium quantity?
A)11
B)14
C)19
D)103
E)None of the above.

Quizplus · Accepted Answer

To find the equilibrium quantity, we need to set demand equal to supply and solve for q:
p F1F1F1S1F1F1F10 131 F1F1F1S1F1F1F10 2q = p F1F1F1S1F1F1F10 5 F1F1F1S1F1F1F10 7q
Canceling out the p and F1F1F10 from both sides, and simplifying, we get:
131 F1F1F1S1F1F1F10 2q = 5 F1F1F1S1F1F1F10 7q
131F1F1F12q+5F1F1F1S1=2F1F1F12131F1F1F1S1
126F1F1F12q=126F1F1F1S1
q=S1
Plugging this value of q back into either the demand or supply equation, we can find the equilibrium price:
p F1F1F1S1F1F1F10 131 F1F1F1S1F1F1F10 2S1 = p F1F1F1S1F1F1F10 5 F1F1F1S1F1F1F10 7S1
Canceling out the p and F1F1F10 from both sides, and simplifying, we get:
p F1F1F1S1= 375/26
Therefore, the equilibrium quantity is 14.