Answer to Question #136440 in Macroeconomics for John

Question

Suppose that the market demand and the market supply for a smart phone are respectively given by P space equals space 500 space minus space 0.01 Q to the power of d and P space equals space 200 plus thin space 0.005 space Q to the power of s . What is the equilibrium price?

Answer 1

p=500-0.01Q^d

Q^d=(500-p)/0.01

Q^d=50,000-100p

p=200+0.005Q^s

Q^s=(p-200)/0.005

Q^s=200p-40,000

Q^d=Q^s

50,000-100p=200p-40,000

p=300