Question

Photon Lighting Company determines that the supply and demand functions for its most popular lamp are as follows: S(p) = 400 - 4p + 0.00002p4 and D(p) = 2800 - 0.0012p3, where p is the price. Determine the price for which the supply equals the demand.

A) $93.24
B) $100.24
C) $96.24
D) $99.24

Answer 1

S(p) = 400 - 4p + 0.00002p^4
D(p) = 2800 - 0.0012p^3

S(p) = D(p)
400 - 4p + 0.00002p^4 = 2800 - 0.0012p^3
0.00002p^4 + 0.0012p^3 - 4p - 2400 = 0
p = $96.24