The demand and supply functions for your college newspaper a

The demand and supply functions for your college newspaper are, respectively, q = 11,000p + 5,300 and q = 5,000p + 500, where p is the price in dollars. At what price should the newspapers be sold so that there is neither a surplus nor a shortage of papers?

Solution

Solution:

-11,000p +5,300=5,000p +500

16000p = -4800

p = - 4800/16000

p = - 48/160

p = - 0.3

The price should the newspapers be sold so that there is neither a surplus nor a shortage of papers is

p = - 0.3