Finite Mathematics, Chapter 1, Review Exercises, Section Review Exercises, Problem 36

Determine the equilibrium quantity and price for the diet pills if the supply and demand function
is $\displaystyle S(q) = \frac{1}{2} q + 10$ and $\displaystyle D(q) = -\frac{1}{2}q + 72.50$ respectively.

The equilibrium quantity is found when the prices from both supply and demand are equal. This is $D(q) = S(q)$

$\begin{equation} \begin{aligned} -\frac{1}{2} q+ 72.50 &= \frac{1}{2} q + 10\\ \\ -\frac{1}{2} q- \frac{1}{2} q &= 10 - 72.50\\ \\ -q &= -62.50\\ \\ q &= 62.50 \end{aligned} \end{equation}$


Therefore, the equilibrium price is

$\begin{equation} \begin{aligned} S(62.50) &= \frac{1}{2}(62.50) + 10 \\ \\ &= 41.25 \end{aligned} \end{equation}$


In other words, there is no loss or profit if the number of pills produced is $62.50$