00:01
To find the equilibrium price and quantity.
00:03
And to do that you set these two equations together.
00:05
So we have 100 minus p.
00:09
He goes negative 20 plus two p.
00:14
And then let's solve for peace.
00:15
So you move the negative p.
00:18
Here to make it three p move 20 here to make it 1 20 we get p equals 40.
00:24
And then you can plug this to you can plug this p into your demand or your supply equation to get q.
00:33
Sorry? yeah q.
00:38
Equals 60.
00:40
So those are your equilibrium quality and prices now to so that's a.
00:47
And b.
00:49
Okay so double check your work by plugging the equilibrium price back into the supply equation and solving for the equilibrium quantity.
01:07
You can do that on your own and then solve for the elasticity of demand and supply.
01:14
So your elasticity equation is your change in percent percent change in quantity.
01:23
What represent change in price.
01:26
So to do this we have you pick two points.
01:34
Um by plugging into arbitrary values into um one into either your price and then plugging it or and then receiving those corresponding quantity values.
01:47
So you have cute too minus q.
01:50
One over q.
01:54
Two plus q.
01:55
One over to over p two minus p.
02:05
One over p.
02:07
Two plus p one two divided by two.
02:14
You multiply that by 100 to get very elasticity or your percent change...