Given the demand and supply equations for silver pendants, what is the equilibrium price?

To determine the equilibrium price of silver pendants, we look for the price at which the quantity demanded equals the quantity supplied. The equilibrium occurs where these two forces balance each other, resulting in neither a surplus nor a shortage in the market.

In practical application with demand and supply equations, you would typically set the quantity demanded equal to the quantity supplied and solve for the price. For example, if the demand equation indicates that at $15, the quantity demanded matches the quantity supplied, that price is designated as the equilibrium price.

The identified price of $15 signifies that at this point, consumer interest in purchasing silver pendants aligns perfectly with the amount available from producers. It indicates a well-functioning market where resources are allocated efficiently, satisfying both consumer desire and producer output.

In this context, the choice of $15 signifies the point where market forces have converged, ensuring that the economy operates without excess supply or unmet demand, thus confirming it as the equilibrium price.