Question

When p = $5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units. For every $1 decrease in the price of this good, quantity demanded rises by 5 units and quantity supplied falls by 5 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units?

Answer 1

Answer: Equilibrium price is $3 and equilibrium quantity is 40 units.

Step-by-step explanation:

Demand equation is given by,

`image`

Therefore the demand equation is given by,
`Qd= 55 – 5P`

Supply equation is given by

`image`

Therefore, the supply equation is given by,

`Qs= 25 + 5P`

Equilibrium is given by

`image`