Question

the demand and supply curves for a good are given by qd = 50 – 2p and qs = p – 1, where the price is measured in dollars per unit. calculate the following:

Answer 1

The price is $2 and the quantity is 12 at the intersection of the demand and supply curves.

Step-by-step explanation:

If algebra is not your forte, you can get the same answer by using graphs. Take the equations for Qd and Qs and graph them on the same set of axes.

The demand curve is then P = 8 - 0.5Qd and the supply curve is P = -0.4 + 0.2Qs.

When you draw the graphs carefully and find the point where the demand and supply curves intersect (Qs = Qd), the price is $2 and the quantity is 12.