If demand equation is given by D =800-P and the supply equation given as S = 200+ 2P , equilibrium price would be_____. a.p=100. b. p=200 c. p=300 d. p=400
Answers
Answer:200
Explanation:
Answer:
The correct answer is a)p=100
Explanation:
In its preferred shape a linear demand equation is Q = a - bP. this is, quantity demanded is a function of charge. The inverse demand equation, or price equation, treats price as a characteristic f of quantity demanded: P = f(Q).
In economics, call for is the amount of an awesome that customers are willing and able to purchase at various charges at some point of a given period of time. the connection between fee and quantity call for is also called the demand curve. demand for a particular object is a characteristic of an item's perceived necessity, fee, perceived pleasant, comfort, to be had alternatives, purchasers' disposable income and tastes, and plenty of different options.
The fee of the commodity: The primary call for relationship is between potential expenses of a very good and the portions that would be bought at the ones fees. normally, the connection is poor, that means that an increase in rate will result in a decrease in the amount demanded. This negative relationship is embodied inside the downward slope of the client call for curve. the belief of a poor courting is cheap and intuitive. as an instance, if the fee of a gallon of milk were to upward thrust from $5 to a rate of $15, that might be a huge price growth. any such substantial fee boom causes the customer to demand much less of that product on the fee of $15 due to the fact now not handiest is it greater expensive, but the new fee is very unreasonable for a gallon of milk.
fee of associated items: The fundamental associated items are complements and substitutes. A complement is a great that is used with the primary precise. Examples include hotdogs and mustard, beer and pretzels, motors and gas. (best enhances behave as a single excellent.) If the fee of the supplement goes up, the quantity demanded of the other appropriate is going down.
Mathematically, the variable representing the rate of the complementary proper could have a bad coefficient within the call for feature. for example, Qd = a - P - Pg wherein Q is the quantity of motors demanded, P is the price of motors and Pg is the price of gasoline. the alternative principal category of associated items are substitutes. Substitutes are goods that can be used in location of the number one proper. The mathematical courting among the rate of the bogus and the demand for the best in query is nice. If the charge of the unreal is going down the demand for the best in query is going down.
If demand equation is given by D =800-P and the supply equation given as S = 200+ 2P
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The demand and supply equation for a product is given below: Y d = 100 – P Y s = 70 + 2P Determine the equilibrium price and quantity.
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