42) Given the demand equation 3 + p -40=0 and the supply equation 2x - p + 10=0, where p is the unit price in dollars and x represents the quantity in units of a thousand, determine the equilibrium quantity and the equilibrium price.

Equilibrium point is where the curves meet, or

D: 3x + p -40=0
S: 2x - p + 10=0

Solve for x and p to get:
x=6, p=22, i.e.
Equilibrium point is at
price =22, and x=6 (thousands).

Thanks. Was having difficulty setting up equation. Finally got right answer.

You're welcome!

To determine the equilibrium quantity and price, we need to find the values of x and p that satisfy both the demand and supply equations simultaneously.

Let's start by solving the demand equation and the supply equation separately:

Demand equation: 3 + p - 40 = 0
This equation represents the demand curve, where p is the unit price. By rearranging the equation, we get:
p = 37

Supply equation: 2x - p + 10 = 0
This equation represents the supply curve, where x is the quantity in units of a thousand. By rearranging the equation, we get:
2x = p - 10

Now, let's substitute the value of p from the demand equation into the supply equation:
2x = 37 - 10
2x = 27

Solve for x:
x = 27/2
x = 13.5

Therefore, the equilibrium quantity is 13.5 thousand units and the equilibrium price is $37 per unit.

To summarize:
Equilibrium Quantity = 13.5 thousand units
Equilibrium Price = $37 per unit