Find the Equilibrium Point of the Demand and Supply Equations $p$

question 26

Multiple Choice

Find the equilibrium point of the demand and supply equations. (The equilibrium point is the price $p$ and number of units $x$ that satisfy both the demand and supply equations.)
Demand Supply
$p = 130 - 0.09 x$
$p = 0.4 x - 115$

• A) \(( 500,85 )\)
• B) \(( 200,112 )\)
• C) \(( 835,219 )\)
• D) \(( 300,103 )\)
• E) inconsistent

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor.

Productivity

Productivity measures the efficiency of production in terms of the amount of goods and services produced from a given amount of inputs, such as labor and capital, within a specific period.

Derived Demand

Derived demand refers to the demand for a good or service that originates from the demand for another good or service.

Final Demand

The demand for finished goods and services by consumers, businesses, and government, excluding intermediate goods.