In Palampur’s market, the supply of wheat is given by $S(p)=200p$ and the demand by $D(p)=1200-600p$, where $p$ is the price in rupees per kilogram. Find the equilibrium price and the equilibrium quantity of wheat.

Step-by-step solution

1. Write the supply equation: $S(p)=200p$.
2. Write the demand equation: $D(p)=1200-600p$.
3. Set supply equal to demand: $200p=1200-600p$.
4. Add $600p$ to both sides: $800p=1200$.
5. Divide by $800$ to solve for price: $p=1.5$ rupees/kg.
6. Substitute $p$ into supply to get quantity: $Q=200\times 1.5=300$ kg.

Concept tested: Market equilibrium

Published 7 October 2026 · How this solution was prepared and checked