Final answer:
The equilibrium price and quantity using demand and supply equations in Economics. By setting the demand and supply equal to each other and solving for price, one can find the equilibrium point algebraically or graphically by plotting the demand and supply curves and identifying their intersection.
Step-by-step explanation:
The concepts of demand and supply in Economics, particularly how to determine the equilibrium price and quantity through algebra and graphing methods. When Qd = Qs, the demand and supply equations are set equal to each other to find the price (P) at which the quantity demanded equals the quantity supplied, signifying market equilibrium.
For instance, using given equations Qd = 60 - P and Qs = P - 10, one could set them equal to each other and solve for P. However, the equations provided in the reference material (16 - 2P = 2 + 5P) seem unrelated to these functions, leading to potential confusion. Instead, solving for P using the original equations would demonstrate that the equilibrium occurs at the price where both equations yield the same quantity. Graphically, this can be represented on a graph where the demand and supply curves intersect, providing an alternative visual solution for those less comfortable with algebra.
Graphing Qd and Qs, we would derive the curves from rearranged equations, P = 60 - Qd and P = Qs + 10 respectively, and find their intersection point. This graphical approach often aids in visualizing the impact of changes in demand and supply on the equilibrium price and quantity.