College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 4 - Section 4.1 - Properties of Linear Functions and Linear Models - 4.1 Assess Your Understanding - Page 282: 39

Answer

a) Equilibrium price $p = 24$ b) For $p < 24$ , $D(p) > S(p)$ c) When quantity demanded is more than supply, then price will go up

Work Step by Step

$S(p) = - 600 + 50p$ $D(p) = 1200 - 25p$ A) At equilibrium price, D(p) = S(p) => $-600 + 50p = 1200 -25p$ => $75p = 1800$ => $p = 24$ Equilibrium quantity $S(24) = -600 + 50\times24 = 600$ b) p for which $D(p) > S(p)$ =>$1200 -25p > -600 + 50p$ =>$1200 + 600 > 50p + 25p$ => $p < 24$ For p<24 demand will be more than supply c) When quantity demanded is more than supply, then price will go up
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