The supply function for the production of good A is P=50+45Q. The demand function is P= 100-5Q. Find the equilibrium price and quantity.

At P_Qe supply equals demand so we set equations equal to each other and solve as symoltaneous equations: 50+45Q=100-5Q

then 50Q=50

so Q_e=1.

By plugging Q=1 into our supply function we get P_Qe=95.