Question

If demand curve for alphonso mangoes is d = 25000 70p and supply curve is s = 10000 + 80p, find the equilibrium quantity? solution

Answer 1

To find equilibrium quantity, first we need to find the price at which our market clears i.e the price where dd=ss.
25000-70p= 10000+80p
15000 = 150p
p* = 100
Now put p* in dd equation
q* = 25000 - 70(100)
= 18000.