The demand curve for knobs is P=75-6QD and the supply curve for knobs is P=35+2QS. What is the equilibrium price of a knob?

To find the equilibrium price of a knob, we need to find the price at which the quantity demanded and the quantity supplied are equal. In other words, we need to find the price at which the demand curve and the supply curve intersect.

Given the demand curve: P = 75 - 6QD,
And the supply curve: P = 35 + 2QS.

To find the equilibrium price, we need to set the quantity demanded equal to the quantity supplied:

QD = QS.

Substituting the equations for the demand and supply curves, we have:

75 - 6QD = 35 + 2QS.

Now, let's solve for QD:

75 - 6QD = 35 + 2QD,

Collecting like terms:

8QD = 40,

Dividing both sides by 8:

QD = 5.

Now, substitute this value of QD back into either the demand or supply equation to find the equilibrium price.

Using the demand equation P = 75 - 6QD:

P = 75 - 6(5),

P = 75 - 30,

P = 45.

Therefore, the equilibrium price of a knob is $45.

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