16 . Demand and Supply curves can be represented by: Qd = 90-2P; and Qs = 3P. Calculate the equilibrium price and quantity:
P = $18; and Q = 54 |
P = $90; and Q = 45 |
P = $30; and Q = 54 |
P = $30; and Q = 30 |
Demand Function
Qd = 90-2P
Supply Function
Qs = 3P
Equilibrium condition is demand equals to supply.
Demand function = Supply function
90-2P = 3P
90 = 5P
P = 90/5 = $18
Quantity = 90 – 2 (18) = 54
Answer (a) P = $18; and Q = 54
16 . Demand and Supply curves can be represented by: Qd = 90-2P; and Qs =...
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17. Demand and Supply curves can be represented by: Qd = 90-2P; and Qs = 3P. Using the same Demand and Supply curves that can be represented by: Qd = 90-2P; and Qs = 3P. Producer Surplus is: $486 $243 $118 $900
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