00:01
So we start off here with the demand function of 200 minus 0 .2p.
00:07
I'm going to rearrange this to make it easier to grab.
00:10
If i flip this around a little bit, right, you can see that p would be equal to 1 ,000 minus 5 qd, right? that's inverting the demand curve.
00:22
We are also given a supply curve, right? quantity supplied is 0 .1p minus 40.
00:28
Let me do the exact same thing.
00:31
It's qs plus 40.
00:33
P is equal to 10 qs plus 400.
00:37
So now when i sketch these, i have the y intercepts ready to go, right? if i think about quantity and price, the demand curve starts at 100, 1 ,000 and slopes down.
00:51
And the supply curve starts at 400 and slopes up, right? so let's find equilibrium.
00:59
If we look for equilibrium, we will set these things to be equal to each other, right? supply is equal to demand.
01:06
1 ,000 minus 5q is equal to 10q plus 400.
01:12
That gives me 600 is equal to 15q.
01:16
Q is therefore equal to 600 over 15, and that's 40.
01:27
Q is equal to 40.
01:29
And the equilibrium, price can therefore be determined from putting in 40 for each of these things...