Question on: JAMB Economics - 2014
Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.
A
34
B
32
C
36
D
16
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Correct Option: C
To find the equilibrium price, we need to equate the quantity demanded (Qd) and the quantity supplied (Qs).
-
Set Qd equal to Qs: 40 - 2P = 6P + 24
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Isolate P (price):
- Add 2P to both sides: 40 = 8P + 24
- Subtract 24 from both sides: 16 = 8P
- Divide both sides by 8: P = 2
Therefore, the equilibrium price is 2. However, this is not an option, there must be a mistake in the question. Let's calculate the equilibrium quantity as well to check if it aligns with any provided options.
Substitute P =
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