Question

Qd=25000-2P

Qs=1000+1P

Calculate the equilibrium of price and quantity of a housing unit

Answer 1

At equilibrium $Qd=Qs$

$25000-2p=1000+1p$

$25000-1000=1p+2p$

$24000=3p$

$p=8000$

We can put the value of P in any of the equation (demand or supply).

Putting the value on P in demand equation;

$Qd = 25000-2P$  

   $= 25000 - 2(8000)$

   $= 25000 - 16000$

$= 9000$

Hence, the equilibrium of price is 8000 and quantity of a housing unit is 9000.