Question

The demand curve is P = 100-5Qp. The supply curve is P = 50 + 2Qs.

At market equilibrium, what is the equilibrium quantity?
At market equilibrium, the equilibrium quantity is
OA. 0.14
OB. 2
OC. 7.1
OD. 64.29

Answer 1

To find the equilibrium quantity, we need to find the point where the demand and supply curves intersect, which is where the quantity demanded is equal to the quantity supplied.

To find the equilibrium quantity, we need to solve the equation:

100 - 5Qp = 50 + 2Qs

This can be rearranged to get:

Qp = (50 + 2Qs) + 5Qs

So we know that at market equilibrium, Qp = Qs

By substituting Qp = Qs in the first equation and solving for Q, we get:

Q = OC. 7.1

Therefore, the equilibrium quantity is 7.1.