The demand function is $p = 40 - x^{2}$ and the supply function is $p = 3x^{2} + 4$ . What is the equilibrium price?

₹3Correct answerYour answer₹9Correct answerYour answer₹31Correct answerYour answer₹36Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

$40 - x^{2} = 3x^{2} + 4$ gives $4x^{2} = 36$ , so $x = 3$ ; a negative quantity is not allowed.
The price is $40 - 9 = 31$ rupees.

Worth noting

3 is the equilibrium quantity; the price is found by putting it back into either function.

Ten questions from Consumer & Producer Surplus, at your own pace.

Ten questions from Consumer & Producer Surplus, at your own pace.

The demand function is p=40−x2p = 40 - x^{2}p=40−x2 and the supply function is p=3x2+4p = 3x^{2} + 4p=3x2+4. What is the equilibrium price?