meerkat18
Answered

Photon Lighting Company determines that the supply and demand functions for its most popular lamp are as follows: S(p) = 400 - 4p + 0.00002p4 and D(p) = 2800 - 0.0012p3, where p is the price. Determine the price for which the supply equals the demand.

A$93.24
B$100.24
C$96.24
D$99.24

Verified Answer :

Answer: The correct answer is (C).

Explanation:

Supply function:

\(S(p)=400-4p+0.00002p^4\)

Demand function:

\(D(p)=2800-0.0012p^3\)

S(p)=D(p), price for which supply is equal to demand:

\(S(p)=D(p)=400-4p+0.00002p^4=2800-0.0012p^3\)

After solving this above equation graphically, we will get the values of p.

1) p =96.236

2) p=( -118.258)

We will reject the negative value of p.

So, the value of p that price for which the supply equals the demand is $ 96.236 @@MATH_TOKEN_3@@ $96.24. Hence, the correct answer is option (C).

View image IlaMends

Answer:

Price equals $96.24

Explanation:

It is given that,

The supply function is given by, @@MATH_TOKEN_0@@

The demand function is given by, @@MATH_TOKEN_1@@

We have to find the price for which the supply equals to the demand.

@@MATH_TOKEN_2@@

@@MATH_TOKEN_3@@

After solving above equation we get :

So, it is clear from the attached graph that p = 96.24 and q = -118.26

So, the correct option is (c) " $96.24 ".

View image shirleywashington

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