# Thread: Supply and demand functions

1. ## Supply and demand functions

Hi guys I would appreciate any help on how to tackle this problem.

Q. Consider the market supply and demand functions given by:

qD = -1pD + 2000
qS = 12pS - 200

a.) Find the market equilibrium point
b.) Transpose/invert the equations to find the inverse supply and demand functions

2. Originally Posted by komodo
Hi guys I would appreciate any help on how to tackle this problem.

Q. Consider the market supply and demand functions given by:

qD = -1pD + 2000
qS = 12pS - 200

a.) Find the market equilibrium point
b.) Transpose/invert the equations to find the inverse supply and demand functions

Dear komodo,

For the first part you have to know that at the market equilibrium, $q_d=q_s$.

Therefore, $-p+2000=12p-200$

$13p=2200$

$p=169.2308$

To find the inverse supply and demand functions subject p (unit price) in the given equations.

3. Originally Posted by Sudharaka
Dear komodo,

For the first part you have to know that at the market equilibrium, $q_d=q_s$.

Therefore, $-p+2000=12p-200$

$13p=2200$

$p=169.2308$

To find the inverse supply and demand functions subject p (unit price) in the given equations.
Thanks for your quick response I made a typo mistake the first equations should have been qD= -8pD + 2000 not -1pD anyhow would I be correct in assuming that the equlibrium point is 110P based the corrections?

Thank

4. Originally Posted by komodo
Thanks for your quick response I made a typo mistake the first equations should have been qD= -8pD + 2000 not -1pD anyhow would I be correct in assuming that the equlibrium point is 110P based the corrections?

Thank
Then the equilibrium price would be 110 (not 110P).

5. Originally Posted by Sudharaka
Then the equilibrium price would be 110 (not 110P).
Yeap sorry I meant 110=p