If the equilibrium quantity demanded for a new sports watch is 900 truckloads of watches and the equilibrium price is $70 per watch then a drop in the price of watches to $40

Question

Gerardo

Business

11 October, 04:14

If the equilibrium quantity demanded for a new sports watch is 900 truckloads of watches and the equilibrium price is $70 per watch then a drop in the price of watches to $40

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Lizeth Carpenter · Answer 1

This item is asking us to determine the number of truckloads of watches that needs to be manufactured in order to reach equilibrium. If we let x be the number of watches then, the equation that would best describe the given is,

(900) (70) = (x) (40)

The value of x from the equation is 1575. Thus, the company needs to manufacture 1575 watches.