Question

Given the demand Qd-2p=300 and the supply function Qs+3p=500 and you are asked to find the equilibrium price and equilibrium Q

Answer 1

Explanation:

Qd=300+2p

Q's=500-3p

At the equilibrium point

Qd=Qs

or,300+2p=500-3p

or,5p=200

or p=40

Therefore equilibrium price is 40 ₹and equilibrium quantity =Q=300+2p=500-3p=380 units