Answer to Question #97405 in Macroeconomics for Gbenga

Question

Qd = 5 - P , and Qs = -5 + P, then equilibrium price and quantity will be

Answer 1

$Qd=5-p$

$Qs=-5+p$

To get equilibrium price, equate Qd and Qs and solve for p

$5-p=-5+p$

$10=2p$

$5=p$

Thus, $Ep=5$

To get equilibrium quantity, substitute the equilibrium price to any of the two equations

$Eq=5-p=5-5=0$

$EP=5$ and $Eq=0$