Question

Given the supply function and inverse demand function, Qs = 40 + 20 P and p=10-1/10Q

respectively. Determine the equilibrium price and quantity?

Answer 1

$$Q_S=40+20p$$

$$Q_D=100-10p$$

$$100-10p=40+20p$$

$$30p=60$$

$$p=2$$

$$Q=80$$