# Find the equilibrium point given the demand function D(x) = -4x+8 and the supply function ...

## Question:

Find the equilibrium point given the demand function {eq}D(x) = -4x+8 {/eq} and the supply function {eq}S(x) = 4x+2 {/eq}

## Supply-Demand curve

This problem involves use of concept of equilibrium point in the demand and supply curve. If the definition of equilibrium point is known, the problem becomes fairly straightforward.

## Answer and Explanation:

Equilibrium point is defined as the point where the Supply curve and the demand curve cross each other.

Thus, if {eq}D(x_0) = S(x_0) {/eq} , then, {eq}x_0 {/eq} is the equilibrium point.

Hence, simply equating D(x) and S(x),

{eq}\displaystyle D(x_0) = S(x_0) \rightarrow -4x+8 = 4x +2 \rightarrow x = \frac{6}{8} = 0.75 {/eq}

Hence, equilibrium point is {eq}\displaystyle (0.75,5) {/eq}

#### Learn more about this topic: Supply and Demand Curves in the Classical Model and Keynesian Model

from Economics 102: Macroeconomics

Chapter 7 / Lesson 2
123K