Answer to Question #159938 in Microeconomics for Josie

Question

. if Qd = a/b - cP and Qs = d/e + fP, in market equilibrium (Qd = Qs) what is P, Qd and Qs?

Answer 1

Equating $Q_d$ and $Q_s$, we get:

$$\dfrac{a}{b}-cP=\dfrac{d}{e}+fP,$$ $$P=\dfrac{ae-bd}{be(c+f)}.$$

Substitunig $P$ into the $Q_d$ and $Q_s$, we get:

$$Q_d=\dfrac{a}{b}-c\dfrac{(ae-bd)}{be(c+f)},$$ $$Q_s=\dfrac{d}{e}+f\dfrac{(ae-bd)}{be(c+f)}.$$