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Consider the market for corn, which is perfectly competitive. Supply and demand are given by: Q ₛ ​ =2P−20 Q D​ =150−3P​ 1a. Find the market equilibrium price and quantity.

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Final answer:

The equilibrium price and quantity for corn are found by setting the supply and demand equations equal to each other. The equilibrium price is $34, and the equilibrium quantity is 48 units.

Step-by-step explanation:

The market equilibrium price and quantity for corn in a perfectly competitive market can be found by setting the supply function equal to the demand function. Given that the supply is Qs = 2P - 20 and the demand is QD = 150 - 3P, we can find the equilibrium by solving the equation 2P - 20 = 150 - 3P. Solving for P gives us P = 34, which implies an equilibrium price of $34. To find the equilibrium quantity, we substitute P = 34 into either the demand or supply equation. Using the supply function, Qs = 2(34) - 20, we get an equilibrium quantity of Q = 48 units of corn. Therefore, the equilibrium quantity is 48 units at the equilibrium price of $34.

User Henrique Bastos
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