Suppose that the demand and supply curves in the market for apples have the following functional forms: QD = 250 - 4p and QS = 10 + p. The equilibrium quantity and price would then be: ...Please explain.
A) Q = 58, p = 48
B) Q = 48, p = 58
C) Q = 68, p = 98
D) Q = 92, p = 48
E) Q = 68, p = 108
At the equilibrium the demand and supply are equal so we can write it as Qd= Qs
= 250 -4P = 10 + p
or 250 - 10 = P + 4p
= 240 = 5P
P = 240 / 5 = 48.
As the price is 48 we can put the number in any equation and get the value of the quantity.
250 - 4 (48) = 58. the answer is "A". price is 48 and the quantity is 58.
Suppose that the demand and supply curves in the market for apples have the following functional...
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