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

The equilibrium price is found where the demand curve and supply curve intersect. Setting the two equations equal to each other, we get:75 - 6Q_D = 35 + 2Q_S-8Q_D = -40Q_D = 5Substituting Q_D = 5 into either the demand or supply equation, we get:P = 75 - 6(5) = $45Therefore, the equilibrium price of a knob is $45.

The Demand Curve for Knobs Is P = 75 -