The price P of a good and the quality Q of a good are linked.
The demand for a new pair of trainers can be modelled using the equation P= (-3/4)Q+35
The supply of trainers can be modelled using the equation P= (2/3)Q+1.
They meet on the same pair of axes. The equilibrium point is the point whereto supply and demand lines meet

Find the values of P and Q at the equilibrium point.

Respuesta :

the equilibrium point, is when Demand = Supply, namely, when the amount of "Q"uantity demanded by customers is the same as the Quantity supplied by vendors.

That occurs when both of these equations are equal to each other.

let's do away with the denominators, by multiplying both sides by the LCD of all fractions, in this case, 12.


[tex]\bf \stackrel{\textit{Supply}}{-\cfrac{3}{4}Q+35}~~=~~\stackrel{\textit{Demand}}{\cfrac{2}{3}Q+1}\implies \stackrel{\textit{multiplying by 12}}{12\left( -\cfrac{3}{4}Q+35 \right)=12\left( \cfrac{2}{3}Q+1 \right)} \\\\\\ -9Q+420=8Q+12\implies 408=17Q\implies \cfrac{408}{17}=Q\implies \boxed{24=Q} \\\\\\ \stackrel{\textit{using the found Q in the Demand equation}}{P=\cfrac{2}{3}(24)+1}\implies P=16+1\implies \boxed{P=17} \\\\[-0.35em] \rule{34em}{0.25pt}\\\\ ~\hfill \stackrel{Equilibrium}{(24,17)}~\hfill[/tex]