Question

Suppose the demand for fish tacos is given by the following equation: Qd = 12 - 2P where Qd is the quantity demanded per week of fish tacos, and P is the price of fish tacos. Suppose further that the supply of fish tacos is: Qs = 1 + 3P where Qs is the quantity supplied per week of fish tacos. What is the equilibrium market price of fish tacos? (Round your answer to 2 decimal places.)

Answer 1

Q = 7.6

P= 2.2

Step-by-step explanation:

`\left \{ {{Qd = 12 - 2P} \atop {Qs = 1 + 3P}} \right.`

The equilibrium price makes both, supply and demand equal quantity.

we can conclude Qd = Qs

We replace quanty by their price-based expression

12 - 2P = 1 + 3P

And we can solve for price

11 = 5P

2.2 = P

Then we solve for Q

1 + 3 x 2.2 = 7.6