Suppose the demand curve for a product is Qd 20... - SS2 Economics Determination of Equilibrium Price And Quantity Question
Suppose the demand curve for a product is Qd = 200 - 3P and the supply curve is Qs = 40 + P. What is the equilibrium price and quantity?
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.
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