Suppose that the market for a children’s book is given by the following demand and supply...

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Question

Suppose that the market for a children’s book is given by the following demand and supply...

Suppose that the market for a children’s book is given by the following demand and supply functions:

Demand: Q_D= 98 - 4P

Supply: Q_S= -4 + 2P

Where: Q_D and Q_S are quantity demand and quantity supplied respectively, and P is the price.

The equilibrium price is $______

business economics

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Answer 1

Answer #1

Using the equilibrium condition QD = QS,

98-4p = -4+2p

102 = 6p; p =17.

The equilibrium price is $17.

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Answer 2

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