Answer to Question #207867 in Economics for Paballo

Question

• Given the demand for a product as Qd = 200 - 2P and the supply is given as Qs = 50+P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium quantity for the product is A. 200
•  B. 250
•  C. 100
•  D. 150

Answer 1

Let's first find the equilibrium price:

$$Q_d=Q_s,$$ $$200 - 2P_E=50+P_E,$$ $$150=3P_E,$$ $$P_E=R50.$$

Finally, we can find the equilibrium quantity:

$$Q_E=200 - 2\cdot R50=100.$$

Therefore, the correct answer is (C) 100.