Answer to Question #201735 in Microeconomics for Anathi Tobigunya

Question

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

Qd = 600 - 30p

Qs = -300 + 120p

If the price is R8, then there will be a surplus of _____ units. 

Answer 1

$Qs = Qd$

$600-30P = -300 +120p$

$600+300 = 120p + 30p$

$900 = 150p$

$P = 900/150$

$= 6$

$R8 = 6 × 8$

$= 48 units$