Answer to Question #311877 in Microeconomics for Asivhothe Hope

Question

If the equation for a market demand curve is Qd = 15 – 0,2P and the equation for a market supply curve is Qs = ̶ 1 + 0,6P, the market equilibrium price and quantity are? 

Answer 1

Given that

Qd= 15 - 0.2p and

Qs= -1+0.6p

E=Qd=Qs=0

$15-0.2p=-1+0.6p$

$16=0.8p$

$P^*=20$

$Q^*=15-0.2(20)=11$