Answer to Question #175845 in Microeconomics for michele Ford

Question

Equilibrium is the condition in the market system when the quantity demanded is equal to the quantity supplied. Given the definition of equilibrium, answer the following questions:
4.2.1. Calculate the equilibrium quantity and price if the quantity supplied can be represented by the equation Qs = 18 000 + 0.2P and the quantity demanded can be represented by the equation Qd = 2 400 – 0.1P. [Tip: Solve the value of P first and then substitute this P-value in the calculation of the Q-value.]

Answer 1

Qs=qd

18000+0.2p=24000-0.1p

24000-18000=0.2p+0.1p

6000=0.3p

P=6000/0.3

P=20000

Qd=24000-0.1p

Qd=24000-0.1(20000)

Qd=22000