Question #d39b8

1 Answer
Alexander A.
Mar 23, 2017

The equilibrium price would be when the Pdemand = Psupply. In this case the equilibrium price is 22 when the price per unit is 3.

Explanation:

Start by setting the equations equal to each other.
#25-Q=Q^2+2Q+7#
Then rearrange
#Q^2+3Q-18=0#
Solve for Q
#(Q+6)(Q-3)=0#
#Q=-6,3#
Since a negative supply value doesn't make sense, #Q=3#
Plugging Q backing into the original 2 equations, we find that Pdemand and Psupply are both equal to 22.

Drawing a graph allows you to find the answer without the algebra by graphing both lines separately and finding the point of intersection.

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