Question

If demand curve for almonds is d = 73000 - 30p and supply curve is s = 18000 + 25p, find the equilibrium quantity

Answer 1

Answer:

The equilibrium quantity is 1000 units.

Step-by-step explanation:

The demand function is

$d=73000-30p$

The supply function is

$s=18000+25p$

At equilibrium demand and supply are equal.

$s=d$

$73000-30p=18000+25p$

$73000-18000=30p+25p$

$55000=55p$

$1000=p$

Therefore, the equilibrium quantity is 1000 units.

Answer 2

Answer:

43000

Step-by-step explanation:

At equilibrium, supply(s) = demand(d)

Thus, 73000-30p = 18000+25p

p = 1000

Both demand and supply are functions of price, therefore 'p' must be price.

Now substitute value of 'p' back in either 's' or 'd' as at equilibrium both are equal.

Therefore, supplied quantity,

's' = 18000+25×1000

= 43000.