Final answer:
The equilibrium price and quantity can be determined by setting the demand and supply equations equal to each other. The equilibrium price is $4.00 and the equilibrium quantity is 200 kg. The demand and supply curves can be graphed by plotting different quantities and their corresponding prices.
Step-by-step explanation:
The equilibrium price and quantity can be determined by setting the demand and supply equations equal to each other. In this case, the demand equation is given as P = 800 - 2Q and the supply equation is P = 200 + Q. To find the equilibrium price, we set these two equations equal to each other: 800 - 2Q = 200 + Q. Solving for Q, we find Q = 200. Substituting this value back into either the demand or supply equation, we can find the equilibrium price. Substituting Q = 200 into the demand equation, we have P = 800 - 2(200) = 400. Therefore, the equilibrium price is 400 cents, or $4.00.
To graph the demand and supply curves, we can plot points using different quantities and their corresponding prices. For example, for the demand curve, if Q = 0, then P = 800. If Q = 400, then P = 0. For the supply curve, if Q = 0, then P = 200. If Q = 400, then P = 600. Connecting these points will give us the demand and supply curves. To find the equilibrium quantity, we can observe where the curves intersect, which is at Q = 200 (as solved algebraically) and P = 400.