Answer to Question #290404 in Macroeconomics for Jabesa

Question

Suppose there is a market demand fuction given by:p=30-1/2Qd,and market supply function :Qs=30+2p,what would be equilibrium price and quantity (respectively)

Answer 1

$P=30-\frac{1}{2}Q_d$

$\frac{1}{2}Q_d=30-P$

$Q_d= 60-2P$

$Q_s=30+2P$

At Equilibrium, $Q_s=Q_d$

$60-2P=30+2P$

$4P=30$

P= 7.5

Replace P to either demand or Supply equation

$Q_s= 30+2(7.5)= 30+15$

Equilibrium Quantity= 45