Question

78%
Q.No : 2
The price p, when supply is 21 for the supply function, s
p2 + p + 1 is
A) 5
B) 4
C) 1
D) 3​

Answer 1

SOLUTION

TO CHOOSE THE CORRECT OPTION

The price p, when supply is 21 for the supply function, s = p² + p + 1 is

A) 5

B) 4

C) 1

D) 3

EVALUATION

Here it is given the supply function,

s = p² + p + 1

Now we have to find the price p when supply is 21

Which gives

$\sf{ {p}^{2} + p + 1 = 21}$

$\sf{ \implies \: {p}^{2} + p + 1 - 21 = 0}$

$\sf{ \implies \: {p}^{2} + p - 20 = 0}$

$\sf{ \implies \: {p}^{2} +(5 - 4) p - 20 = 0}$

$\sf{ \implies \: {p}^{2} +5p - 4 p - 20 = 0}$

$\sf{ \implies \: p(p + 5) - 4 (p + 5) = 0}$

$\sf{ \implies \: (p + 5) (p - 4) = 0}$

$\sf{ \implies \: p = - 5 \: , \: 4}$

Since price can not be negative

So p ≠ - 5

Therefore p = 4

FINAL ANSWER

Hence the correct option is B) 4

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