Elementary and Intermediate Algebra: Concepts & Applications (6th Edition)

Published by Pearson
ISBN 10: 0-32184-874-8
ISBN 13: 978-0-32184-874-1

Chapter 12 - Exponential Functions and Logarithmic Functions - 12.7 Applications of Exponential Functions and Logarithmic Functions - 12.7 Exercise Set - Page 837: 54

Answer

The equilibrium point between the price of supply and demand for sale of stereos is$\left( 6,\$403\right)$.

Work Step by Step

The equation of supply price is $S\left( x \right)={{e}^{x}}$, and the equation of demanded price is $D\left( x \right)=162,755{{e}^{-x}}$ We find: $\begin{align} & S\left( x \right)=D\left( x \right) \\ & {{e}^{x}}=162,755{{e}^{-x}} \end{align}$ Now, multiply by ${{e}^{x}}$ on both sides: $\begin{align} & {{e}^{x}}=162,755{{e}^{-x}} \\ & {{e}^{2x}}=162,755 \end{align}$ $\begin{align} & {{e}^{2x}}=162,755 \\ & \ln {{e}^{2x}}=\ln 162,755 \\ & 2x=\ln 162,755 \\ & x=\frac{\ln 162,755}{2} \end{align}$ Further simplified, $\begin{align} & x=\frac{\ln 162,755}{2} \\ & x=\frac{12.0}{2} \\ & x=6 \end{align}$ Now, to find second coordinate of equilibrium, put the value of $x=6$in $S\left( x \right)$ as, $\begin{align} & S\left( x \right)={{e}^{x}} \\ & S\left( 6 \right)={{e}^{6}} \\ & S\left( x \right)\approx 403 \end{align}$
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