The demand and supply functions for your college newspaper are respectively, q= 11,000p-1,600 and q=4,000p+500 , where p is the price in dollars. At what price should the newspapers be sold so that there is neither a surplus nor a shortage of papers?

Question

The demand and supply functions for your college newspaper are respectively, q= 11,000p-1,600 and q=4,000p+500 , where p is the price in dollars. At what price should the newspapers be sold so that there is neither a surplus nor a shortage of papers? Write your answer in dollars. (Hint: Find the equilibrium price)

Anonymous · Answer

Given:

Demand function: q = 11,000p – 1,600
Supply function: q = 4,000p + 500

Step 1: Set the demand function equal to the supply function to find the equilibrium quantity and price. Demand = Supply 11,000p – 1,600 = 4,000p + 500
Step 2: Solve the equation for p (price). 11,000p – 1,600 = 4,000p + 500 11,000p – 4,000p = 500 + 1,600 7,000p = 2,100 p = 2,100 ÷ 7,000 p = 0.3
Therefore, the equilibrium price is $0.30. At this price, the quantity demanded will be equal to the quantity supplied, and there will be neither a surplus nor a shortage of college newspapers.

Jake · Answer

the newspapers should be sold at a price of $0.30

The demand and supply functions for your college newspaper are respectively, q= 11,000p-1,600 and q=4,000p+500 , where p is the price in dollars. At what price should the newspapers be sold so that there is neither a surplus nor a shortage of papers?

2 Answers