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Math Help - Supply and demand functions

  1. #1
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    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

    Many Thanks in advance
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  2. #2
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    Quote Originally Posted by komodo View Post
    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

    Many Thanks in advance
    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.
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  3. #3
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    Quote Originally Posted by Sudharaka View Post
    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
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  4. #4
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    Quote Originally Posted by komodo View Post
    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).
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  5. #5
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    Quote Originally Posted by Sudharaka View Post
    Then the equilibrium price would be 110 (not 110P).
    Yeap sorry I meant 110=p
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