Answer to Question #118873 in Microeconomics for Simma

Question

A product has the following demand and supply equations:
Qd=100-3P and Qs=20+2P

a) What is the equilibrium price?
b) What is the equilibrium quantity?

Answer 1

Equilibrium means that supply is equial to demand:

$Q_d=100-3P=20+2P=Q_s$

From this equation:

a)Equillibrium price is $P=16$

b)Equillibrium quantity is $Q_d=Q_s=20+2P=52$