Question

The demand and supply function of a good are given by

P = -3Qd +100

P =2Qs +50

Where p, Qd and Qs denotes the price, quantity demanded and quantity supplied respectively.

Calculate the equilibrium price and quantity.

Answer 1

$-3Q_d+100=2Q_s+50,$

$Q_d=Q_s,$

$50=5Q_d,$

$Q_d=Q_s=10,$

$P=70.$