The demand in units per week for a given product as a function of its price, p, in dollars is given as D(p) = 1100 Ð 200p, the supply of the same product in units per week as a function of its price, p, in dollars is given as S(p) = 100p Ð 100. The market clearing price is the price at which supply equals demand, what is the market clearing price for this product?
just solve D(p) = S(p)
1100-200p = 100p-100
To find the market clearing price, we need to equate the demand and supply functions and solve for the price at which they are equal.
Demand function: D(p) = 1100 - 200p
Supply function: S(p) = 100p - 100
Setting them equal: 1100 - 200p = 100p - 100
To solve for p, let's simplify the equation by combining like terms:
1100 + 100 = 100p + 200p
1200 = 300p
Now, divide both sides of the equation by 300:
1200 / 300 = 300p / 300
4 = p
Therefore, the market clearing price for this product is p = 4 dollars.