Question

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium price and quantity?

Answer 1

Equilibrium Price =$Q_s=Q_d$

$-20 + 10p=400 - 20p$

$30p=420$

$p=14$

Equilibrium Price =14

Equilibrium Quantity =$400-(20×14)=120$