pearlmopuleng
Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

suppose the absolute values of the intercept and slope of the demand function are approximated to be 10 and 3 respectively. if the absolute values of the intercept and slope of the supply function are assessed to be 6 and 5 respectively. calculate equilibrium price and quantity .

Sagot :

ogorwyne

The equilibrium price is $0.5 while the equilibrium quantity is 8.5

From the Demand data that we have in this question,

Slope = 3

Intercept = 10

The demand equation

D = -3p + 10

D = 10 - 3p

The supply data

Slope = 5

Intercept  = 6

Supply equation

S = 6 + 5p

D = S

This is because at equilibrium, supply = demand

Therefore,

10-3P = 6+5P

collect like terms

10-6 = 3p+5p

4 = 8p

Divide through by 8

[tex]p =\frac{4}{8} \\\\= \frac{1}{2}[/tex]

Equilibrium price = $0.5

The equilibrium quantity

D = 10 - 3*0.5

= 10-1.5

= 8.5

Therefore from the calculation, the equilibrium price is $0.5 and the equilibrium quantity is 8.5

Read more on https://brainly.com/question/16689858?referrer=searchResults

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.