Question

Compute the following to get the equilibrium price and quantity.

1) Qd= 30-5P

2) Qs= 0+5P

Answer 1

At equilibrium;

$Q_d=Q_s\\30-5P=0+5P\\30=10P\\P=3$

Substituting P in Q_d to get equilibrium quantity ;

$Q=30-5(3)\\ =15$

Equilibrium price=3

Equilibrium quantity=15