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

Aidyn Turner

Mathematics

19 April, 00:19

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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Zion Wyatt · 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