Equilibrium Price and Quantity of Lamps

What are the equilibrium price and quantity of lamps?

Given the demand and supply equations:

Demand: P = 350-3QD

Supply: P = 250 + 3QS

Answer:

The equilibrium price is $251 per lamp, and the equilibrium quantity is 33 lamps per day.

The equilibrium price and quantity for lamps can be determined by setting the demand and supply equations equal to each other:

350-3QD = 250 + 3QS

Solving for QD, we get:

QD = 33 + QS

Substitute QD back into the demand equation:

P = 350 - 3(33 + QS)

After simplifying, we find that the equilibrium price of a lamp is $251, and the equilibrium quantity is 33 lamps per day.

This shows that at the equilibrium price and quantity, the quantity demanded equals the quantity supplied, resulting in a stable market for lamps.