Determination of Equilibrium Price And Quantity - SS2 Economics Past Questions and Answers - page 1

The point at which the supply and demand curves intersect in a market, resulting in a quantity of a product that consumers are willing to buy and producers are willing to sell, and a price at which they are willing to exchange it.

Setting Qd = Qs, we have:

80 - P = 30 + 2P

Simplifying the equation, we get:

50 = 3P

P = 16.67

Substituting P = 16.67 into either the demand or supply equation, we get:

Qd = 80 - 16.67 = 63.33

Qs = 30 + 2(16.67) = 63.33

The equilibrium price is $16.67 and the equilibrium quantity is 63.33 units (rounded to two decimal places).

Setting Qd = Qs, we have:

200 - 3P = 40 + P

Simplifying the equation, we get:

160 = 4P

P = 40

Substituting P = 40 into either the demand or supply equation, we get:

Qd = 200 - 3(40) = 80

Qs = 40 + (40) = 80

The equilibrium price is $40 and the equilibrium quantity is 80 units.