Question

Let p = the price in dollars charged for the dose of a drug. Suppose that the annual demand (in millions of doses) = 1000 - 3p. The annual supply (in millions of doses) = 600 + 2p. The annual supply will equal the annual demand if the price of a dose is ______ dollars.

Answer 1

Answer:

The price of a dose should be 80 dollars for the annual suply to be equal to the annual demand

Explanation:

We have the following variabels

Annual demand = 1000-3p

Annual supply = 600 + 2p

To know the price we should equal the supply and the demand

Annual supply = Annual demand        Replace the equations in the variables    

600 + 2p = 1000 - 3p              Clear p in the equation

2p + 3p = 1000 - 600

5p = 400

$p = \frac{400}{5}$

p = 80

The price of a dose should be 80 dollars for the annual suply to be equal to the annual demand