The correct option is - B (16, 22)
Explanation:
<u>Given:
</u>
Demand function = P = -Q +38
Supply function = P = Q – 6
<u>In order to find the equilibrium, the demand function must be equal to the supply function.
</u>
Thus, putting the demand function equal to the supply function , we get,
Q – 6 = -Q + 38
Solving the above equations, Q = 22
Now, putting the value of Q in demand function in order to find out the value of P,
P = -22 + 38
P = 16
Thus, Option B is correct (16, 22)
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