For the pair of supply-and-demand equations, where x represents the quantity demanded in units of 1,000 and p is the unit price in dollars, find the equilibrium quantity and the equilibrium price. p = - 0.5x + 11.5 and p = 0.25x + 3.25
A) equilibrium quantity 11,000 units; equilibrium price $6
B) equilibrium quantity 110,000 units; equilibrium price $6
C) equilibrium quantity 11,000 units; equilibrium price $5
D) equilibrium quantity 110,000 units; equilibrium price $5

Question

Quizplus · Accepted Answer

To find the equilibrium quantity and price, set the two equations equal to each other and solve for x: -0.5x + 11.5 = 0.25x + 3.25. Solving this equation gives x = 11, indicating the equilibrium quantity is 11,000 units (since x represents thousands of units). Substituting x = 11 into either equation to find the equilibrium price gives p = $6.

For the Pair of Supply-And-Demand Equations, Where X Represents the Quantity