Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
Title: suppose the supply function for a product is 2p-q-30=0
Description: exam questions with complete answer and explanation
Description: exam questions with complete answer and explanation
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
Answer
In supply function q = 90 ,
p= 130 in demand function,
$65, is the equilibrium price
90 is the equilibrium quantity
The market equilibrium point (q,p);
(90,65)
Explanation
Supply function
2p-q-30=0
Demand function
(p+10)(q+30)=8400
Solve for supply function q,
q = 2p-30 -> eq
...
1 to demand function;
(p+10)(2p-30+30)=8400
(p+10)(2p)=8400
2p2+20p-8400=0 ;divide by 2 to simplify
p2+10p-4200=0; find the roots by completing the square
p2+10p+52= 4200+52
(p+5)2= 4225
p+5= √4225 ; disregard the negative root since p is a positive value
...
p2+10p+52= 4200+52 ; as what we get earlier p = $65, is the equilibrium price
For the equilibrium quantity;
ps=pd
q/2 +15 = (8400/q+30)-10
q/2+25 = 8400/q+30
q/2(q+30)+25(q+30)= 8400
q2/2 +15q +25q+ 750-8400 =0
q2/2 +40q -7650 =0 ; multiply by 2 to eliminate fraction
q2+80q-15300=0 ; find the roots and take the positive root only
q2+80q+402=15300+402
(q+40)2=16900
q +40 =√16900
q = 130-40
q = 90, is the equilibrium quantity
The market equilibrium point (q,p)
(90,65)
Title: suppose the supply function for a product is 2p-q-30=0
Description: exam questions with complete answer and explanation
Description: exam questions with complete answer and explanation