Use the following two equations to answer the questions below. (1) P = 12-20 (2) P...

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business economics

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Answer 1

Answer #1

Equilibrium price is the price at which quantity demanded equals quantity supplied. So,

12-2Q=3+Q

3Q=9

Q=3

P=12-2Q=12-2*3=$6

So,

Equilibrium price is $6 and equilibrium quantity is 3

Q	P=12-2Q	P=3+Q
0	12	3
1	10	4
2	8	5
3	6	6
4	4	7
5	2	8
6	0	9

Price, $ 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 -Demand -Supply 0 1 3 4 5 6 7 N Quantity

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Answer 2

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