Supply and demand equations can be used to set pricing for products. In each of the situations described, supply and demand equations are given. Your job is to find the price at which the number of products produced will equal the number of products sold. In other words, you want to make sure that as many products are sold as are created.

Work through each problem with paper and pencil. Then use the interactive application to check your solutions. Click on the "play" button and then enter your values into the appropriate boxes. You may have to hit the "enter" key after entering a new set of values to refresh the application. The interactive application will round decimal values to the nearest whole cent, so your paper and pencil solutions may not always exactly match the solutions given by the application.

You may note that the application shows a graphical representation of the results. The point graphed is called the point of equilibrium. Using this point, you can visually interpret not only the price at which products must be sold for the supply to equal the demand, but the number of units that must be supplied to meet the demand.

Also, please note the following correction: the equation for supply near the entry box should read S(p) = _____ p not S(p) = ______.