Question

Find the equilibrium price and equibrium quantity of Qd=180-25P and Qs = -40 +30p

Answer 1

The equilibrium price is $4, and the equilibrium quantity is 80 units by solving the system of equations where Qd and Qs are set equal to each other.

Step-by-step explanation:

To find the equilibrium price and equilibrium quantity for the given demand and supply equations Qd = 180 - 25P and Qs = -40 + 30P, we first set Qd equal to Qs as they are at equilibrium:

180 - 25P = -40 + 30P

Adding 25P to both sides and adding 40 to both sides gives us:

180 + 40 = 25P + 30P

220 = 55P

Dividing both sides by 55 yields:

P = 4

Thus, the equilibrium price (P) is $4. Plugging this back into either the demand or supply equation to find the equilibrium quantity (Q), we get:

Qd = 180 - 25(4)

Qd = 180 - 100

Qd = 80

So the equilibrium quantity (Q) is 80 units.

Answer 2

The equilibrium price is 4

Step-by-step explanation:

At equilibrium, the quantity demanded of a product is equal to the quantity supplied.

The quantity demanded is given as :

Qd=180-25p

The quantity supplied is given as:

Qs = -40 +30p

Equating both equations gives:

`180 - 25p = - 40 + 30p`

We group similar terms to get:

`30p + 25p = 180 + 40`

This implies that:

`55p = 220`

Divide both sides by 55:

`p = (220)/(55) = 4`

There the equilibrium price is 4