Answer to Question #281029 in Economics for Zarina

Question #281029






Given the demand and supply equations,




Qdx = 150 - 20Px and Qsx=-30+50Px, Find a) Equilibrium price; b) if market price is Rs3.50, what will be amount of surplus units?



Plz i want a proper solution πŸ™

1
Expert's answer
2021-12-19T18:09:22-0500

a) In equilibrium Qd = Qs, so:

150βˆ’20Px=βˆ’30+50Px,150 - 20Px = -30 + 50Px,

70Px = 180,

Px = 2.57.

b) If market price is Rs 3.50, then the amount of surplus units is:

Qsβˆ’Qd=(βˆ’30+50Γ—3.5)βˆ’(150βˆ’20Γ—3.5)=65.Qs - Qd = (-30 + 50Γ—3.5) - (150 - 20Γ—3.5) = 65.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment