Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 1 - Linear Functions - Chapter Review - Review Exercises: 49

Answer

Equilibrium price: $\$ 41.25$, and Equilibrium quantity: $62.5$ diet pills.

Work Step by Step

The supply and demand functions we found: $S(q)=0.5q+10$ $D(q)=-0.5q+72.50$. Equilibrium: $S(q)=D(q)$ Solving for q, $0.5q+10=-0.5q+72.50\qquad/+0.5q-10$ $q=62.50$ The corresponding equilibrium price is S(q)... $S(62.5)= 0.5(62.5) +10$ $=31.25+10$ $=41.25$ Equilibrium price is $\$ 41.25$, and Equilibrium quantity is $62.5$ diet pills.
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