Question:

Need Help! Economics Problem!?

by  |  earlier

0 LIKES UnLike

How do I solve this:

Assume the demand for the commodity is represented by the equation P = 10 - 0.20Qd and supply by the equation P = 2 +0.20Qs where Qd and Qd are quantity demanded and quantity supplied, respectively and P is the price. Using the equilibrium condition Qd = Qs, solve the equations to determine equilibrium price and quantity.

Need your help on this! Thanks!!

 Tags:

   Report

1 ANSWERS


  1. 10-0.2Q=2+0.2Q

    0.4Q=8

    Q=20

    P=10-0.2*20=10-4=6

    Equilibrium: Q=20; P=6

Question Stats

Latest activity: earlier.
This question has 1 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.