Answer to Question #280273 in Macroeconomics for Vasu

Question

At the market supply of and demand for some goods are described by formula

Qd=3800-15p

Qs=10p+1300

Answer 1

Given that:

$Q_d=3800-15p$

$Q_s=10p+1300$

At equilibrium quantity demanded is equal to quantity of good supplied at a given price.

Thus

3800−15p=10p+1300

3800-1300=25p

$p=\frac{2500}{25}=100$

Quantity demanded is equals to:

$Q_d=3800-15p$

substituting the value of p we get

$Q_d=3800-(15\times100)=2300$

Quantity of goods supplied is:

$Q_s=(10\times100)+1300=2300$

This proofs the relation that at equilibrium the quantity supplied is equal to the quantity demanded.