Answer to Question #203011 in Microeconomics for Oratile

Question

The market demand and supply for renting apartments in the Rosebank areas are given as: Demand:P=12 000-5Q. Supply: P=800+3Q

Calculate the equilibrium quantity and price

Answer 1

$Q_D=Q_S$

$12,000-5Q=800+3Q$

$12,000-800=5Q+3Q$

$11,200=8Q$

$Q=1,400$

$P=12,000-5Q$

$P=12,000-5(1400)$

$P=12,000-7000$

$P=5,000$