Score 05 of 1 pt Bus Econ 2340 A certain product has supply

Score: 0.5 of 1 pt Bus Econ 2.3.40 A certain product has supply and demand functions given by p -40q 300 and p 4300 40q, respectively a. If the price p is $1500, how many units q are supplied and how many are demanded? b. What price gives market equilibrium, and how many units are demanded and supplied at this price? When the price p is $1500, there are units supplied and units demanded (Simplify your answer.)

Solution

a) p=1500

units q supplied is calculated by p=40q+300 or q=(1500-300)/40=30

units q demanded is calculated by p=4300-40q or q=(4300-1500)/40=70

b)for price that gives market equilibrium,

equating the ,supply and demand functions we get

40q+300=4300-40q

80q=4000

q=50

so price will be 2300