Answer to Question #320874 in Economics of Enterprise for LOT

Question

Determine the equilibrium quantity: Qd=25-3P; Qs=10+2P 

Answer 1

Q_d = 25-3P

Q_s = 10+2P

At equilibrium Q_d= Q_s

25-3P = 10 + 2P

25-10 = 2P+3P

15 = 5P

$\frac{15}{5} = \frac{5P}{5}$

P = 3

Q_d $= 25-3P$

$=25-3(3)$

$=16$

Therefore the quantity at equilibrium is 16.