Question

7. The following relations describe the supply and demand for specific good:
QD = 65000 – 10000P
QS = - 35000 + 15000P
a) Compute the following table
Price QS QD Surplus pr Shortage
$7
$6
$5
$4
$3
$2

a) What is the equilibrium price?

Answer 1

Answer on Question 69777-Economics - Microeconomics

The following relations describe the supply and demand for specific good:

$$QD = 65000 - 10000P$$ $$QS = -35000 + 15000P$$

a) Compute the following table

Price QS QD Surplus or Shortage

$7

$6

$5

$4

$3

$2

a) What is the equilibrium price?

Answer.

a)

b) The equilibrium price is $4, when quantity supplied and quantity demanded are equal (there is neither surplus nor shortage).

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