Answer to Question #304489 in Microeconomics for sssssssss

Question

The market demand curve for a product is given by

DD: p=200-q

ss:p=50+0.5q

Answer 1

At equilibrium, $Q_d=Q_s$

$Q_d: =200-q$

$Q_s=50+0.5q$

Hence;

$200-q=50+0.5q$

$150=1.5q$

$q=100$

So, Price is given by;

$200-q$

$=200-100$

$=100$

Therefore, the Price is 100 and the quantity demanded is 100 units