3.2 The demand function is Q = 100-p, and the sup- ly function is Q =...

Question

Question

business economics

Answer 1

Answer #1

Given the demand function QD = 100 - P

the supply function QS = 20 + 3P

Now, to determine the equilibrium price and quantity we need to equate both these demand and supply functions as :-

Now we obtained the equilibrium price as $80.

Next we substitute this Value of P in either demand or supply function to get equilibrium Quantity.

Substituting P in demand function, we get:-

QD = 100 - 80 = 20.

Hence the equilibrium quantity is 20.

Now we can plot the graph easily to locate the equilibrium price and quantity as:-

Answer 2

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