Suppose the quantity demanded, q, of a product when the price is p dollars is given by the equation p = 462 - 5 q, and the quantity supplied is given by the equation p = 2 q. Find the equilibrium price and quantity.

q = 66

P = 132

Step-by-step explanation:

To get the equilibrium price, we need to find the price at which the quantity demanded equals the quantity supplied.

Now we equate the equations of the demanded quantity and the supplied quantity:

462 - 5q = 2q

7q = 462

q = 462/7 = 66

The price at this level is obtained by substituting the value of q into any of the equation

Using P = 2q

P = 2 * 66 = 132