Question

The market demand and supply schedule for commodity X is as follows:

Qd=2000 -60 P and Qs=400 + 40P

What is the equilibrium price (RS) and quantity (Units) demanded for on the Market. Use a Diagram.

Answer 1

$Q_d=Q_s,$

$1600=100P,$

$P=16,$

$Q_d=Q_s=1040.$