Question

Supply: P = √Q + 10, Demand: P = 20 - Q. What is the equilibrium quantity?

a) Q = 5
b) Q = 10
c) Q = 15
d) Q = 20

Answer 1

To find the equilibrium quantity, we need to set the demand and supply equations equal to each other. By solving the resulting equation, we find that the equilibrium quantity is Q = 5.

Step-by-step explanation:

To find the equilibrium quantity, we need to set the demand and supply equations equal to each other:

Supply: P = √Q + 10

Demand: P = 20 - Q

Setting these equations equal to each other, we get:

√Q + 10 = 20 - Q

Subtracting Q from both sides:

√Q + Q + 10 = 20

Combining like terms:

2Q + 10 = 20

Subtracting 10 from both sides:

2Q = 10

Dividing both sides by 2:

Q = 5

Therefore, the equilibrium quantity is Q = 5.