Question

Let qd = 80 - p and qs = 2p - 100 describe the demand and supply function for a commodity.

Answer 1

Answer: For the demand and supply of the commodity, the price of the commodity should be rs.60.

Step-by-step explanation:

Demand equation is given by:

qd=80-p

The demand equation shows a negative relation between demand and price, i.e. increase in price will decrease in demand. The commodity would be demanded only when the price of the commodity would be less than rs.80.

Supply equation is given by:

qs=2p-100

The supply equation shows a positive relation between supply and price, i.e. increase in price will increase in demand. The commodity would be supplied only when the price of the commodity would be greater than rs.50.

To reach at equilibrium, the demand and quantity should be equal.

So, 80-p=2p-100

3p=180

P=60