Download Section 2.3, Example 3

example 3
Market Equilibrium
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
b. Does this price give a surplus or a shortfall of the product?
c. What price gives market equilibrium?
Chapter 2.3
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
b. Does this price give a surplus or a shortfall of the product?
c. What price gives market equilibrium?
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
340  2q
170  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
340  2q
170  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
a. If the price is $140, how many units are supplied and how many are demanded?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
b. Does this price give a surplus or a shortfall of the product?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
b. Does this price give a surplus or a shortfall of the product?
Demand function: p  200  2q
price
per unit
Supply function:
quantity
of units
p  60  5q
140  200  2q
60  2q
30  q
140  60  5q
80  5q
16  q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
p  200  2q
p  60  5q
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
Supply
60  5q  200  2q
60  7 q  200
7 q  140
q  20
(20,160)
Demand
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
Supply
60  5q  200  2q
60  7 q  200
7 q  140
q  20
(20,160)
Demand
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
Supply
60  5q  200  2q
60  7 q  200
7 q  140
q  20
(20,160)
Demand
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
Supply
60  5q  200  2q
60  7 q  200
7 q  140
q  20
(20,160)
Demand
2009 PBLPathways
Suppose the daily demand for a product is given by p  200  2q , where q is the number
of units demanded and p is the price per unit in dollars, and that the daily supply is given
by p  60  5q , where q is the number of units supplied and p is the price per unit in
dollars.
c. What price gives market equilibrium?
 p  200  2q

 p  60  5q
Supply
60  5q  200  2q
60  7 q  200
7 q  140
q  20
(20,160)
Demand
2009 PBLPathways