Question

Given the demand for a product as Qd=100-5P and the supply is given as Qs=-20+3P. You are told equilibrium is obtained at the point where Qd=Qs. The equilibrium price for the product is

A. R5

B. R6.67

C. R15

D. R20

Answer 1

$$Q_d=Q_s,$$ $$100-5P_E=-20+3P_E,$$ $$120=8P_E,$$ $$P_E=R15.$$

Therefore, the correct answer is (C) R15.