Can someone please clarify the solution below: Given information, Demand: P = 107.5-0.25Qd Supply: Qs = 3.45P + 295.55 First, let us change the demand curve in terms of P, such that: (especially at this part) Qd=(107.5-P)/0.25 Qd=430-4P Using the given and computed information, market equilibrium price would be: Qd=Qs 430-4P=3.45P+295.55 430-295.55=3.45P+4P 134.45=7.45P 134.45/7.45=P 18.04=P 18=P At the market equilibrium price of 18, equilibrium market quantity would be: Qd=430-4(P) Q=430-4(18) Q=430-72 Q=358 units
Can someone please clarify the solution below: Given information, Demand: P = 107.5-0.25Qd Supply: Qs = 3.45P + 295.55 First, let us change the demand curve in terms of P, such that: (especially at this part) Qd=(107.5-P)/0.25 Qd=430-4P Using the given and computed information, market equilibrium price would be: Qd=Qs 430-4P=3.45P+295.55 430-295.55=3.45P+4P 134.45=7.45P 134.45/7.45=P 18.04=P 18=P At the market equilibrium price of 18, equilibrium market quantity would be: Qd=430-4(P) Q=430-4(18) Q=430-72 Q=358 units
Chapter5: Supply, Demand, And Price: Applications
Section5.7: Application 7: Why Do Colleges Use Gpa,s Actss, And Sats, For Purposes Of Admission?
Problem 2ST
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Can someone please clarify the solution below:
Given information,
Demand : P = 107.5-0.25Qd- Supply: Qs = 3.45P + 295.55
First, let us change the demand curve in terms of P, such that: (especially at this part)
Qd=(107.5-P)/0.25
Qd=430-4P
Using the given and computed information,
Qd=Qs
430-4P=3.45P+295.55
430-295.55=3.45P+4P
134.45=7.45P
134.45/7.45=P
18.04=P
18=P
At the market equilibrium price of 18,
Qd=430-4(P)
Q=430-4(18)
Q=430-72
Q=358 units
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