Chapter 3.5, Problem 12E

Reminder Round all answers to two decimal places unless otherwise indicated.

Market Supply and demand The quality of wheat, in billions of bushels, that wheat suppliers are willing to produce in a year and offer for sale is called the quantity supplied and is denoted by $S$. The quantity supplied and is determined by the price P of wheat, in dollars per bushel, and the relation is

$P=2.13S-0.75$.

The quantity of wheat, in billions of bushels, that wheat consumers are willing to purchase in a year is called the quantity demanded and is denoted by $D$. The quantity demanded is also determined by the price P of wheat, and the relation is

$P=2.65-0.55D$.

At the equilibrium price, the quality supplied and the quality demanded are the same. Find the equilibrium price for wheat.