Question

The demand and supply function of good are given by pd=58-0.2q

Answer 1

Answer:

1. Demand and supply in a market are described by the equations

Qd = 66-3P

Qs = -4+2P

(i) Solve algebraically to find equilibrium P and Q

In equilibrium Qd = Qs

66-3P = -4+2P

-3P-2P = -4-66

-5P = -70

5P = 70

P* = 14

Qd = Qs = 66-3P = 66-3(14) = 66-42 = 24 = Q*

Step-by-step explanation:

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