Question

1.              If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium price and quantity? (2 marks)

Answer 1

$Qd=Qs$

$400-20p=-20+10p$

$400+20=10p+20p$

$420=30p$

$P=14$

$Q=400-20(14)\\=400-280\\=120$