Question

Find the market equilibrium if P=-40+Q and P=80-Qd

Answer 1

Equilibrium occurs at the point where the quantity demanded is equal to the quantity supplied.

Equating the demand curve to the supply curve and solving for Q:

$$-40 + Q = 80- Q$$

$$2Q = 120$$

$$Q^* = \dfrac{120}{2}$$ $$\boxed{\color{blue}{Q^* = 60}}$$

The equilibrium price is:

$$P^* = -40 + 60$$

$$\boxed{\color{blue}{P^* = \$20}}$$