Answer to Question #272828 in Microeconomics for Meselech

Question

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

Answer 1

At equilibrium

Quantity supplied equal quantity demanded.

$Q_s =Q_d$

$\therefore$

$a+bp= c-hp$

$hp+bp = c-a$

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

$P_e$ equilibrium price is

$p_e= \frac{c-a}{h+b}$

$Q_s = Q_d$

Quantity at equilibrium$Q_e$

$Q_e = \frac{Q_s}{Q_d}$

$Q_e = \frac{a+bp}{c-hp}$