Question

Suppose that the market demand is given by Q=100−4P and that market supply is given by Q=P. What is the market equilibrium price?

Answer 1

The market equilibrium price is $20.

Step-by-step explanation:

To find the market equilibrium price, we need to set the quantity demanded equal to the quantity supplied. Given that the demand is Q = 100 - 4P and the supply is Q = P, we can set 100 - 4P = P. Solving for P, we get P = 20. This means that the market equilibrium price is $20.