Suppose the market for a certain dosage of generic cholester

Suppose the market for a certain dosage of generic cholesterol-lowering statin drugs has a supply described by P=15.88+0.19Q (with price measured in cents per capsule and quantity in millions of capsules per day) and a demand described by P=98.74-1.25Q. Calculate the equilibrium quantity (in million capsules per day).
(Format tip: Answers must be within 0.2 of the true value to be counted as correct, so do not round too early.)

(As above) Suppose the market for a certain dosage of generic cholesterol-lowering statin drugs has a supply described by P=15.88+0.19Q (with price measured in cents per capsule and quantity in millions of capsules per day) and a demand described by P=98.74-1.25Q. Calculate the equilibrium price (in cents).
(Format tips: Answers must be within 0.2 of the true value to be counted a correct, so do not round too early. Do not include commas, dollar signs, or cent signs.)

Solution

Supply equation is as follows -

P = 15.88 + 0.19Q

Demand equation is as follows -

P = 98.74 - 1.25Q

Equilibrium is attained when demand equals supply.

Calculating equilibrium quantity by equating demand and supply equations -

15.88 + 0.19Q = 98.74 - 1.25Q

0.19Q + 1.25Q = 98.74 - 15.88

1.44Q = 82.86

Q = 82.86/1.44

Q = 57.54

The equilibrium quantity of generic cholestrol lowering statin drugs is 57.54 million capsules per day.

This value of Q can be put in either demand equation or supply equation to calculate the equilibrium price.

Putting value of Q in demand equation to ascertain equilibrium price -

Demand equation is as follows -

P = 98.74 - 1.25Q

   = 98.74 - 1.25 (57.54)

   = 98.74 - 71.925

   = 26.815

The equilibrium price of generic cholestrol-lowering statin drugs is 26.815 cents per capsule.