Answer to Question #186477 in Macroeconomics for Tanjina

Question

You are given the following demand and supply equations of a product.

Q_d=100-5p

Q_s= 10+5p

Where, Q_d=Quantity demanded

                   Q_s=Quantity Supplied

                   P= Price per unit

(a) Draw the figures for demand and supply on the basis of the above equations

(b)

What will be the equilibrium price and quantity     demonstrate graphically

(c) Graphically show what sort of adjustment would take place to bring about equilibrium if the price happens to be 5 per unit

 

Answer 1

The answer to your question is provided in the image: