Question

The demand and supply functions of a commodity are given as follows:
Qd = 40 – lnp Qs = lnp – 20.
1.Find the equilibrium price and quantity

Answer 1

For price to be at equilibrium ;$Q_d=Q_s$

$40-Inp =Inp - 20$

$2Inp=60$

$p=30$

$Quantity =40-30=10$