Answer to Question #143375 in Economics for Elisabeth

Question

Suppose the demand equation for shale gas is Qd = 10P ^ −1.8 and the supply equation Qs=2P ^ 0.2
What is the equilibrium price and equilibrium quantity?

Answer 1

$$Q_D=10p^{-1.8}$$

$$Q_S=2p^{0.2}$$

$$10p^{-1.8}=2p^{0.2}$$

$$p^2=5$$

$$p=\sqrt 5$$

$$Q=\sqrt [10] {5}$$