The supply function is 2p-q=50.
Demand function is pq=100=20q.
What are the price and quantity of market equilibrium?
I can't figure this out. I think you have to isolate "p" and set the two equations equal to each other...but I can't solve it...
The supply function is 2p-q=50.
Demand function is pq=100=20q.
What are the price and quantity of market equilibrium?
I can't figure this out. I think you have to isolate "p" and set the two equations equal to each other...but I can't solve it...
$\displaystyle pq = 100 + 20q$
$\displaystyle 2p - q = 50$, solve for $\displaystyle q$ ... $\displaystyle q = 2p-50$
substitute $\displaystyle (2p-50)$ for $\displaystyle q$ in the first equation ...
$\displaystyle p(2p-50) = 100 + 20(2p-50)$
solve for $\displaystyle p$ ...
$\displaystyle 2p^2 - 50p = 100 + 40p - 1000$
$\displaystyle 2p^2 - 90p + 900 = 0$
$\displaystyle p^2 - 45p + 450 = 0$
$\displaystyle (p - 15)(p - 30) = 0$
if $\displaystyle p = 15$, $\displaystyle q = -20$
if $\displaystyle p = 30$, $\displaystyle q = 10$
now, which set of solutions is valid?