In order to determine equilibrium mathematically, remember that quantity demanded must equal quantity supplied. The demand for dog treats is represented by the following equation: QD=300-50P. In the equation, QD represents the quantity demanded of dog treats, and P represents the price of a box of dog treats in dollars. Because a negative sign is in front of the term 50P, as price increases, quantity demanded decreases. The supply of dog treats is represented by QS=-100+150P. The quantity supplied of dog treats is represented by QS in this equation, and P again represents the price for a box of dog treats in dollars. A positive sign in front of the 150P indicates a direct relationship exists between price and quantity supplied. Using the word problem, calculate the equilibrium price for dog treats. Which of the following answers would be the correct equilibrium price?
In order to determine equilibrium mathematically, remember that quantity demanded must equal quantity supplied. The demand for dog treats is represented by the following equation: QD=300-50P. In the equation, QD represents the quantity demanded of dog treats, and P represents the price of a box of dog treats in dollars. Because a negative sign is in front of the term 50P, as price increases, quantity demanded decreases. The supply of dog treats is represented by QS=-100+150P. The quantity supplied of dog treats is represented by QS in this equation, and P again represents the price for a box of dog treats in dollars. A positive sign in front of the 150P indicates a direct relationship exists between price and quantity supplied. Using the word problem, calculate the equilibrium price for dog treats. Which of the following answers would be the correct equilibrium price?
