Let Qd stand for the quantity demanded, Qs stand for the quantity supplied, and P stand for price.If Qd = 20 - 2P and Qs = 5 + 3P, then the equilibrium price is
Answers
Answered by
8
The correct answer is: d. 14
At the equilibrium point, the quantity demanded is equal to the quantity supplied
(
Q
d
=
Q
s
)
.
The demand curve is:
Q
d
=
20
−
2
P
And the supply curve is:
Q
s
=
5
+
3
P
Therefore:
20
−
2
P
=
5
+
3
P
5
P
=
15
P
=
15
5
P
∗
=
$
3
To get the equilibrium quantity, we substitute the equilibrium price into either the demand or the supply curve:
Q
=
20
−
2
P
Q
=
20
−
2
(
3
)
Q
∗
=
14
u
n
i
t
s
Similar questions