Question

demand and supply equation for a perfect competition market are given as Qd=100-3P and Q's= 40 +P what will the firm's in that market take

Answer 1

At a perfectly competitive market, $Qd=Qs$ at equilibrium.

$Qd=100-3P$

$Qs=40+P$

Therefore, $100-3P=40+P$

$100-40=P+3P$

$60=4P$

$P=15$

$Qs=40+P$

$40+15=55$

$Q=55$ units.