Answer to Question #201397 in Microeconomics for Motsatsi

Question

Use the following functions that show quantity demanded and quantity supplied to answer the questions

Qd=600 - 30P

Qs=-300 + 120P

What are the equilibrium quantity

Answer 1

At equilibrium:

$Q_d=Q_s \\ 600-30P=-300+120P \\ 900=150P \\ P= \frac{900}{150}=6 \\ Q_{eq}=600- 30 \times 6 = 600-180 = 420$

Answer: 420