If the demand function is Qd 36 - 6p and the su... - SS1 Economics Determinants of Equilibrium Price, Quantity And Point With Simple Applications Question

Solution:

To find the equilibrium level of quantity and price, we need to set the demand function equal to the supply function and solve for Q and p:

Qd = Qs

36 - 6p = 30 + 2p

6p = 6

p = 1

Now that we have the value of p, we can substitute it into either the demand or supply function to find the equilibrium quantity:

Qd = 36 - 6p = 36 - 6(1) = 30

Qs = 30 + 2p = 30 + 2(1) = 32

The equilibrium level of quantity is 30 units and the equilibrium price is $1 per unit.