SOLUTION:
Step 1:
In this question, we are given the following:
Let the supply and demand functions for sugar be given by the following equations. Bye
Supply: p = 0.4x
Demand: p = 100 - 0.4x
a) Find the equilibrium demand.
Step 2:
At Equilibrium,
[tex]\begin{gathered} \text{Supply}=\text{ Demand} \\ 0.\text{ 4 x = 100 - 0. 4 x} \end{gathered}[/tex]collecting like terms, we have that:
[tex]\begin{gathered} 0.4\text{ x + 0. 4 x = 100} \\ 0.8\text{ x = 100} \end{gathered}[/tex]Divide both sides by 0.8, we have that:
[tex]\begin{gathered} x\text{ = }\frac{100}{0.\text{ 8}} \\ x\text{ = 125} \end{gathered}[/tex]
Step 3:
Recall that:
[tex]\begin{gathered} \text{Equilibrium Demand : p = 100 - 0. 4 x } \\ we\text{ put x = 125, we have that:} \\ p\text{ = 100 - 0. 4 (125)} \\ p\text{ =100 -50} \\ p\text{ = 50} \end{gathered}[/tex]CONCLUSION:
Equilibrium Demand:
[tex]p\text{ = 50 units}[/tex]