Answer to Question #162464 in Microeconomics for Adelaide

Question

. MacGuffins have a demand function of QD = 70 – P and a supply function of QS = 2P + 10. Determine the price at equilibrium

         

Answer 1

At equilibrium

Demand = Supply

QD = QS

Hence

$(70-p)=(2p+10)$

$3p=60$

$P=(60÷3)$

$P=20$

Therefore the price at equilibrium is 20