Question

Assume a linear demand function of the form:

Qd = 120 - 5P and a linear supply curve of the form:

Qs = -30 + 10P

Using these demand and supply functions, answer the following questions.

Answer 1

$Q_d=120-5P,$

$Q_s=-30+10P,$

$Q_d=Q_s,$

$120-5P=-30+10P,$

$150=15P,$

$P=10,$

$Q_d=Q_s=70.$