The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS. 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 - 6QD = 35 + 2QSSolving for QS, we get:QS = 20 - 3QDSubstituting this into the demand curve, we get:P = 75 - 6(20 - 3QD)P = 75 - 120 + 18QDP = -45 + 18QDSetting this equal to the supply curve, we get:-45 + 18QD = 35 + 2QSSolving for QS, we get:QS = 40Substituting this into the demand curve, we get:P = -45 + 18(40)P = $45

The Demand Curve for Knobs Is P = 75 -