Answer in Microeconomics for Tayyaba #170358

Question #170358

The supply curve for sugar is given as Supply: Qs = 1750 + 24P and demand for sugar is given as Demand: Ds = 3270 – 26P; where P is price in SR per kg. What will be the equilibrium price and equilibrium quantity in the free market?

Expert's answer

Market equilibrium occurs when $Q_d=Q_s$ :

3270-26P_E=1750+24P_E,

1520=50P_E,

P_E=SR\ 30.4.

Finally, we can find the equilibrium quantity:

Q_E=3270- 26\cdot SR\ 30.4 =2479.6.

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Comments

Assignment Expert

11.03.21, 16:54

Dear Tayyaba, please use panel for submitting new questions

Tayyaba

10.03.21, 10:16

Explain the following cases through graph. Does a change in consumers’ preferences lead to a movement along the demand curve or a shift in the demand curve?