Question

Given the following market equations: Supply: Qs 0+2p Demand: Qd 86 2p Solve for the equilibrium price s(round your caiculation to the nearest penny)

Answer 1

Here the given problem is solved by equating the quantity demanded with the quantity supplied(the condition for equilibrium).

Here the given problem is solved by equating the quantity demanded with the quantity supplied (the condition for equilibrium). Given, Supply (Q_s) = (0 + 2 P) Demand (Q_D) = (86 - 2P) To Calculate for the equilibrium price, equal the quantity supplied and quantity demanded (as this is the equilibrium) therefore Q_s = Q_d implies 0 + 2 P = 86 - 2 P implies 4 P = 86 implies P = 86/4 = $ 21.5 = $ 21.0 (Rounded off)