Use the following information to answer questions 1.2 to 1.4:
Suppose the demand for a product can be represented by Qd = 100 – 5P, while
the supply is given by the equation Qs = –12 + 3P, where price is in rand. Determine the equilibrium price and quantity
At equilibrium, demand equals supply,
Therefore, at equilibrium
Therefore, equilibrium price
=14 Rands.
Therefore, the equilibrium quantity is 30.
Comments
Your feedback was so helpful,thank you very much.