Question

In a given market, demand is described by the equation: QD=1800-10P and supply is described by: QS=200+10P.
(i) determine the equilibrium price and quantity
(ii) Graphically illustrate price and quantity

Answer 1

$i) QD=QS;$

$1800-10P=200+10P;$

$1600=20P; P=$ $ $80;$ $Qd=1800-10×80=$ $ $1000;$

$Qs=200+10×80=$ $ $1000;$