The demand for flatscreen TVs is P 3500 40QD The supply of

The demand for flatscreen TVs is P = 3,500 - 40Q_D. The supply of flatscreen TVs is P = 500 + 40Q_S. What is the equilibrium price of a flatscreen TV and what is the equilibrium quantity of flatscreen TVs per day? The equilibrium price is per flatscreen TV, and the equilibrium quantity is flatscreen TVs per day.

Solution

In equilibrium, demand = supply

3,500 - 40Q = 500 + 40Q

80Q = 3,000

Q = 3,000 / 80 = 37.5

P = 500 + 40Q = 500 + (40 x 37.5) = 500 + 1,500 = 2,000