The number of wrenches that can be produced at a given price can be predicted by the formula , where is the supply (in thousands) and is the price (in dollars). If the demand for the wrenches can be predicted by the formula , find the equilibrium price.

Question

The number of wrenches that can be produced at a given price can be predicted by the formula  , where  is the supply (in thousands) and  is the price (in dollars). If the demand  for the wrenches can be predicted by the formula  , find the equilibrium price.

Quizplus · Accepted Answer

In equilibrium, demand equals supply, so we set the two formulas equal to each other:

11ec187c_750e_d42a_b8be_774d79f681f6_TBX8672_11 = 11ec187c_750e_d42d_b8be_69cdce192b70_TBX8672_11

Solving for the price, we get:

11ec187c_750e_d42b_b8be_07878fcdf769_TBX8672_11 = (11ec187c_750e_d42a_b8be_774d79f681f6_TBX8672_11)/10

11ec187c_750e_d42b_b8be_07878fcdf769_TBX8672_11 = (11ec187c_750e_d42d_b8be_69cdce192b70_TBX8672_11)/10

Plugging in the given values for supply and demand:

(20,000/10) = (60,000/10P)

2000 = 6000/P

P = $3

The Number of Wrenches That Can Be Produced at a Given