Question

advance analysis, a) Assume that a commodity is represented by the equation p=20-2Qd. Supply is represented by equation P=-5+3Qd. Where Qd and Qs are quantity demand and quantity supplied respective

Answer 1

Answer:

Market equilibrium is the point where the quantity demanded by consumers is equal to the quantity supplied by producers. At this quantity the price of both the supply and demand functions will be equal and as long as the market is in equilibrium the prices are controlled by consumer and producer preferences.