Let one weeks supply and demand functions for gasoline be given by p=D (q) = 288-5/2q and p=s (q) = 3/2q, where p is the price in dollars and q is the number of 42 gallon barrels. A. Graph these equations on the same axes. B. Find the equilibrium quantity. C. Find the equilibrium price.

Question

Mathematics

Cristian Leach

5 August, 12:46

Let one weeks supply and demand functions for gasoline be given by p=D (q) = 288-5/2q and p=s (q) = 3/2q, where p is the price in dollars and q is the number of 42 gallon barrels. A. Graph these equations on the same axes. B. Find the equilibrium quantity. C. Find the equilibrium price.

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Answers (1)

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Kiara Pearson · Answer 1

A. To make a quantity-price graph, assign any value for q and solve for p. Plot the ordered pairs and connect.

B. To determine the equilibrium quantity, equate the price for demand and supply,

288 - 5/2q = 3/2q

The value of q from the equation is q = 1/72.

C. To get the equilibrium price, substitute the value of q to any of the equations,

p = D (p) = 288 - 5/2 (1/72) = 108