Question

1. The demand and supply function for a good I start given as Q=3_2p and Q=20+2p.What will be the equilibrium price?

Answer 1

$Qdemanded=Qsupplied$

$Qsupply=20-2p$

$Qdemanded=3-2p$

$3-2p=20+2p$

$-2p-2p=20-3$

$−4p/-4=17/−4$

$P=-4.25$

Equilibrium price= -4.25