Question

For commodity X, the market demand is given by Qx = 25-2P and its market supply is Qx = 3P.The equilibrium price (P) and quantity (Q) will be respectively

Answer 1

firstly equate demand and supply curves:

25 - 2P = 3P

25 = 3P + 2P

25 = 5P

25/5 = P

5 = P

Now we have found the price which is 5

Put the price in any of the above equation; either demand or supply.

I will put P=5 in the market supply equation

Qx = 3P

Qx = 3(5)

Qx = 15

So the market quantity is Q = 15 and the equilibrium price is P = 5

I hope the above solution was helpful.