Question

2. Considering the previous supply line, determine if the following demand function corresponds to the market demand equilibrium stated above. 𝑸𝑫=𝟑𝟎𝟎𝟎−𝟐𝒑.

Answer 1

Considering the previous supply line, the demand function does not correspond to the market demand function as seen below;

$40P= 3000-2P$

$42P = 3000$

$P = \frac{3000}{42}= 71.42$