Question

Given the following demand and supply equations determine the market equilibrium price and quantity. QD=30-3p. As=10-5p. Where Q is quantity and P is price​

Answer 1

Answer:

Equilibrium price, p = 2.5

Equilibrium Quantity, Q = 22.5

Explanation:

The equation is:

Qd = 30 - 3p

Qs = 10 + 5p

At equilibrium, Quantity demanded equals quantity supplied

Equate Qd = Qs to find equilibrium price

30 - 3p = 10 + 5p

30 - 10 = 5p + 3p

20 = 8p

p = 20/8

P = 2.5

Substitute equilibrium price into Qd and Qs equation to find equilibrium Quantity

Qd = 30 - 3p

= 30 - 3(2.5)

= 30 - 7.5

= 22.5

Qs = 10 + 5p

= 10 + 5(2.5)

= 10 + 12.5

= 22.5

Therefore,

Equilibrium price, p = 2.5

Equilibrium Quantity, Q = 22.5