The question is completed as thus:
p=5300 - 60q, respectively.
What price gives market equilibrium, and how many units are demanded and supplied at this price?
Answer:
The equilibrium price is $2750 and the equilibrium quantity is 42.5
Step-by-step explanation:
Give
Supply Function
[tex]p=60q+200[/tex]
Demand Function
[tex]p=5300 - 60q[/tex]
Required: Determine the equilibrium price and quantity
To do this, we equate both functions
[tex]p = p[/tex]
[tex]60q + 200 = 5300 - 60q[/tex]
Collect Like Terms
[tex]60q +60q = 5300 - 200[/tex]
[tex]120q = 5100[/tex]
Make q the subject
[tex]q = \frac{5100}{120}[/tex]
[tex]q = 42.5[/tex]
Substitute 42.5 for q in [tex]p=60q+200[/tex]
[tex]p = 60 * 42.5 + 200[/tex]
[tex]p = 2550 + 200[/tex]
[tex]p =2750[/tex]
Hence, the equilibrium price is $2750 and the equilibrium quantity is 42.5
