2) The demand for boats is given by Q^D=5-1/2p and the supply is given by Q^s=p-1 . What is the equilibrium price and quantity? ) p=3,Q=4 b) p=4,Q=3 c) p=5,Q=4 d) p=12,Q=11

To find the equilibrium price and quantity, we need to set the demand equation equal to the supply equation and solve for p. Then we can substitute the value of p into either the demand or supply equation to find the equilibrium quantity.<br /><br />$Q^{D} = Q^{S}$<br /><br />$5 - \frac{1}{2}p = p - 1$<br /><br />$5 + 1 = p + \frac{1}{2}p$<br /><br />$6 = \frac{3}{2}p$<br /><br />$p = 4$<br /><br />Now, substitute p = 4 into either the demand or supply equation to find the equilibrium quantity:<br /><br />$Q^{D} = 5 - \frac{1}{2}(4) = 5 - 2 = 3$<br /><br />Therefore, the equilibrium price is $p = 4$ and the equilibrium quantity is $Q = 3$.<br /><br />The correct answer is b) $p=4,Q=3$.