Answer to Question #349245 in Microeconomics for vessy

Question

The mathematical functions of supply and demand for broilers in the local market are given below:

The Supply function is:                 Qs = 2100 + 344P;

The Demand function is:              Qd = 3660 – 324P;

The Equilibrium Price is P.

a)     Determine the Equilibrium Price, P.

b)     Mathematically determine the equilibrium Supply and Demand volume for broilers in this market. Show all calculations.

Answer 1

$Q_s=2100+344P,$

$Q_d=3660-324P,$

$Q_s=Q_d,$

$2100+344P=3660-324P,$

$668P=1560,$

$P=2.3,$

$Q_s=Q_d=2903.4.$