Question #242545

if Qs = 500+50P and Qd = 125-25p find Q* and P*

1
Expert's answer
2021-09-26T20:14:20-0400

At equilibrium

Qs=Qd500+50P=125−25P375=−75PP∗=375−75=−5Q∗=500+50×(−5)=250Q_s=Q_d \\ 500+50P=125-25P \\ 375= -75P \\ P^*=\frac{375}{-75} =-5 \\ Q^* = 500 + 50 \times (-5) = 250


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