Question

The demand function for a commodity is 2D=70-4p, and the supply function
is 8p =45 - 16. Find the equilibrium price and equilibrium quantity.
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Answer 1

Answer:

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$51647.515$

Answer 2

The equilibrium quantity and price of the commodity are 3.62 and 15.69 approximately.

Explanation:

We know,that based on the demand-supply condition of market equilibrium,the market demand is equal to the market supply.In this case,the market demand function is given as 2D=70-4p or D=35-2p and supply function is given as 8p=45-16 or p=3.625.Here D represents the market demand of the commodity and p denotes the market price of the commodity.

Therefore,based on the equilibrium condition in the market,we can state:-

$35-2p=3.625$

$-2p=-35+3.625$

$-2p=-31.375$

$p=-31.375/-2$

$p=15.69$

Hence,the equilibrium commodity price or p in this case is approximately 15.69.

Now,plugging the value of equilibrium P in the demand function,we obtain:-

$D=35-2p$

$D=35-2(15.69)$

$D=35-31.38$

$D=3.62$

Therefore,the equilibrium quantity of commodity in the market is 3.62