Answer to Question #203695 in Economics for xoliswa

Question

If the market for bread is described by the following equations Qd=210-0,6P and Qs=-96+1,1P what is the equilibrium quantity for bread?

Answer 1

If the market for bread is described by the following equations Qd = 210 - 0.6P and Qs = -96 + 1.1P, then in equilibrium Qd = Qs, so:

$210 - 0.6P = -96 + 1.1P,$

1.7P = 306,

P = 180,

$Q = -96 + 1.1×180 = 102$ units.