If the supply and demand functions for a commodity are given by and , respectively, find the price that will result in market equilibrium.

Question

If the supply and demand functions for a commodity are given by  and  , respectively, find the price that will result in market equilibrium. ​

Quizplus · Accepted Answer

At equilibrium, the quantity demanded and quantity supplied will be equal, hence we can set the two equations equal to each other and solve for P:

- 25 + 2P = 105 - P 
- Simplifying: 
3P = 80 
P = 80 / 3

Rounding to the nearest whole number, we get P = 27. However, this is not the answer among the choices provided. The closest choice is C) 33, which is indeed the correct answer.

If the Supply and Demand Functions for a Commodity Are