Question

Find the exchange price and quantities for the goods if their demand and supply functions are:
Qd = 10000 - 700P
Qs = 500 + 250P
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Answer 1

Answer:

Qs=Qd, Qs=10000-700p, Qd=500+250p , Qs=Qd , 10000-700p=500+250p, so that both equal to 10000-500=250p+700p, so 9500=950p, p=9500/950=10, p=10