Question #272828

QS= a+bp, QD = c-hp, what is equilibrium price and quantity demanded ?


1
Expert's answer
2021-11-28T17:48:24-0500

At equilibrium

Quantity supplied equal quantity demanded.


Qs=QdQ_s =Q_d


\therefore


a+bp=chpa+bp= c-hp


hp+bp=cahp+bp = c-a


p(h+b)=cap(h+b)= c-a


PeP_e equilibrium price is


pe=cah+bp_e= \frac{c-a}{h+b}


Qs=QdQ_s = Q_d


Quantity at equilibriumQeQ_e


Qe=QsQdQ_e = \frac{Q_s}{Q_d}


Qe=a+bpchpQ_e = \frac{a+bp}{c-hp}






Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!
LATEST TUTORIALS
APPROVED BY CLIENTS