The demand function for fresh strawberries is q = 200

Question

The demand function for fresh strawberries is q = 200 - 5p and the supply function is q = 60 + 2p.What is the equilibrium price?
A)$10
B)$20
C)$40
D)$50
E)None of the above.

Quizplus · Accepted Answer

To find the equilibrium price, set the demand function equal to the supply function and solve for $p$. The demand function is $q = 200 - 5p$ and the supply function is $q = 60 + 2p$. Setting them equal to each other: $200 - 5p = 60 + 2p$, solving for $p$ gives $p = 20$.