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Homework Help: Supply and demand functions for butter pecan ice cream

  1. Sep 11, 2005 #1
    Let supply and demand functions for butter pecan ice cream given by
    p=S(q)= 2/5q and p=D(q)=100 - 2/5q
    where p is the price in dollars and q is the number of 10-gallon tubs.
    Find the equilibrium quantity and the equilibrium price.
    do i just set them equal to each other??

    2/5q=100-2/5q
    equilibrium q=125
    equilibrium p=50
    are these answers correct?
     
  2. jcsd
  3. Sep 11, 2005 #2

    HallsofIvy

    User Avatar
    Science Advisor

    Yes, they are correct.

    You didn't really need someone to tell you that did you? Just put p= 50,q= 125 into the equations and see if they are correct:
    p= (2/5)q= (2/5)(125)= 2(25)= 50 is correct and
    p= 100- (2/4)q= 100- 50= 50 is correct.
     
  4. Sep 11, 2005 #3
    coz someone told me that they are not correct....so i just want to make sure...
    thanks...i have another question
    Suppose a cost-benefit model is given by
    y=(6.5x)/(102-x)
    where y is the cost in thousands of dollars of removing x percent of a certian pollutant.
    a) find the cost of removing each percent of pollutants:
    0%, 80%, 100%
    do i just sub in 0, 0.8 and 1 in the equation where it has x?? or u sub in 1, 80 and 100?
     
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