Question

consider market in which demand and supply equations are given by the following equations :

Qd = 400- 20P

Qs = 40P- 200

calculate the equilibrum price

Answer 1

At equilibrium price:

$Qd=Qs$

$400-20P=40P-200$

$400+200=40P+20P$

$600=60P$

$P=10$