Question

Suppose demand and supply are given by qxd = 14 - (1/2)px and qxs = (1/4)px - 1 instructions: enter your responses rounded to the nearest whole number.

a. determine the equilibrium price and quantity. show the equilibrium graphically. equilibrium price: $

Answer 1

Answer: Equilibrium price is $20 and equilibrium quantity is 4 units.

Step-by-step explanation: Equilibrium is a situation of rest, a situation where demand for a good is equal to its supply. The price that balance demand and supply is known as the equilibrium price.

`image`[/tex] = Equilibrium price

Equilibrium quantity is given by,

`Q_(xd) = 14 - (1)/(2) P_(x) </p><p>= 14 - (1)/(2) * 20</p><p>= 14 - 10</p><p>= 4`