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

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter5: Supply, Demand, And Price: Applications
Section5.7: Application 7: Why Do Colleges Use Gpa,s Actss, And Sats, For Purposes Of Admission?
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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, 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

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