Answer to Question #175094 in Microeconomics for satti

Question

(B)Find equilibrium Price and quantity from the following demand and supply functions.

          I.           P=80-Q(demand)                                     P=20+2Q (supply)

Answer 1

The market equilibrium occurs when $P_d=P_s$:

$$80-Q_E=20+2Q_E,$$ $$60=3Q_E,$$ $$Q_E=20.$$

Finally, we can find the equilibrium price:

$$P_E=80-20=\$60.$$