Question

The demand curve is Qd = 1,600 – 50P and the supply curve is Qs = 1,200 + 150P. Calculate the equilibrium quantity. Group of answer choices

Answer 1

Equilibrium quantity is 1500

Step-by-step explanation:

The equilibrium quantity is achieved at a point where the quantity demanded equals quantity supplied.

Qd=Qs

Qd=1,600 – 50P

Qs== 1,200 + 150P

1,600 – 50P=1,200 + 150P

We need to collect like terms

1600-1200=150P+50P

400=200P

P=400/200

P=2

We need substitute 2 for P in any of Qd or Qs

Qs=1200+(150*2)=1500