Question

in general, as the unit price of a commodity increases, the demand for that commodity decreases. also, as a commodity’s unit price increases, the manufacturer normally increases the supply. the point where supply is equal to demand is called the equilibrium point. find the number of dvds and the price per dvd when supply equals demand.
the number of dvds is 6000.
the price per dvd is $\square$.
the graph below shows the demand and supply equations for previously rented dvds.

Explanation:

Step1: Locate equilibrium on graph

Find the intersection of supply/demand lines. The number of DVDs is given as 6000 (6 on the x-axis, in thousands).

Step2: Match x-value to y-value

At x=6 (6000 DVDs), the y-axis (price per DVD) value is 18.

Answer:

18