Answer to Question #177210 in Microeconomics for Faeem

Question

Good day, Can you please advise on a GRAPH for EQUILIBRIUM quantity calculation of Qs=18000+0.2P & QUANTITY DEMANDED Calcultuon Qd=2400-0.1P

Answer 1

The market equilibrium occurs when $Q_d=Q_s$:

$$2400-0.1P_E=1800+0.2P_E,$$ $$0.3P_E=600,$$ $$P_E=\$2000.$$

Then, we can substitute $P_E$ into the demand function and find the equilibrium quantity:

$$Q_E=2400-0.1\cdot\$2000=2200.$$

Let's draw a graph for the market equilibrium: