Suppose the price p of bolts is related to the quantity q that is demanded by: p = 620 - 4q2 where q is measured in hundreds of bolts. Suppose the supply function for bolts is given by p = 4q2, where q is the number of bolts (in hundreds) that are supplied at price p. Find the equilibrium price.

$310.

Step-by-step explanation:

We have been given that the price p of bolts is related to the quantity q that is demanded by where q is measured in hundreds of bolts. Suppose the supply function for bolts is given by , where q is the number of bolts (in hundreds).

We know that equilibrium price is the point where demanded quantity is equal to supplied quantity.

To solve our given problem, we will equate demand function with supply function and demand function as:

Now, we will substitute in equation , we will get:

Therefore, the equilibrium price would be $310.