Question

Suppose that the demand for rental apartments in Washington, DC, is represented by the following equation, where P is the monthly rent.
QD = 10,000 – 2P

The supply of rental apartments is represented by the following equation:

QS = 2,000 + 3P

The equilibrium rent is a) $ and the equilibrium quantity is b) $

Answer 1

The equilibrium rent is $1600 while the equilibrium quantity is 6800

When quantity demanded is equal to the quantity supplied, the market is said to be in equilibrium. The price at this point is equilibrium price. The quantity at at this point is equilibrium quantity.

In order to determine equilibrium price, equate the quantity demanded and quantity supplied equation

QD = QS

10,000 – 2P = 2,000 + 3P

Combine similar terms

10,000 - 2,000 = 3P + 2P

8000 = 5P

P = $1600

Substitute for monthly rent in the quantity demanded equation

10,000 - 2(1600)

10,000 - 3200

Equilibrium quantity = 6,800

A similar question was solved here: brainly.com/question/14746196?referrer=searchResults