Question

If you have a demand function of Qd=48-9P and a supply function of Qs=-12+6P,

Answer 1

Answer:

The equilibrium quantity is 26.4

Step-by-step explanation:

Given

$Q_d = 48 - 9P$

$Q_s = 12 + 6P$

Required

Determine the equilibrium quantity

First, we need to determine the equilibrium by equating Qd to Qs

i.e.

$Q_d = Q_s$

This gives:

$48 -9P = 12 + 6P$

Collect Like Terms

$-9P - 6P = 12 - 48$

$-15P = -36$

Solve for P

$P = \frac{-36}{-15}$

$P =2.4$

This is the equilibrium price.

Substitute 2.4 for P in any of the quantity functions to give the equilibrium quantity:

$Q_d = 48 - 9P$

$Q_d = 48 - 9 * 2.4$

$Q_d = 26.4$

Hence, the equilibrium quantity is 26.4