Asked by sonu ann sunny on Jun 04, 2024
Verified
The demand for pickles is given by p 167 3q and the supply is given by p 5 6q.What is the equilibrium quantity?
A) 15
B) 23
C) 113
D) 18
E) None of the above.
Demand Function
A mathematical equation that describes the relationship between the quantity of a good consumers are willing to buy and the good’s price, holding other factors constant.
Supply Function
A mathematical expression that shows the relationship between the quantity of a good supplied by producers and the price of the good.
Equilibrium Quantity
The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.
- Compute the equilibrium figures for prices and quantities across diverse goods markets.
Verified Answer
MW
Marita WalkerJun 10, 2024
Final Answer :
D
Explanation :
At equilibrium, demand equals supply.
p 5 6q
F1F1F1(S1) (167-3q) = F1F1F1(S1) (5+6q)
167-3q = 5+6q
8q = 162
q = 20.25
We cannot produce a fraction of a pickle, so we must round down to get 20, which is closest to answer choice D of 18.
p 5 6q
F1F1F1(S1) (167-3q) = F1F1F1(S1) (5+6q)
167-3q = 5+6q
8q = 162
q = 20.25
We cannot produce a fraction of a pickle, so we must round down to get 20, which is closest to answer choice D of 18.
Learning Objectives
- Compute the equilibrium figures for prices and quantities across diverse goods markets.