Answer:
Equilibrium price = $5
Equilibrium quantity = 30 units
Explanation:
Given:
Quantity demanded = Qd = 80 - 10P
Quantity supplied = Qs = -70 + 20P
Find:
Equilibrium price and quantity
Computation:
Equilibrium price and quantity
Qd = QS
So,
80 - 10P = -70 + 20P
150 = 30P
Equilibrium price = $5
Qd = 80 - 10P
Qd = 80 - 10(5)
Equilibrium quantity = 80 - 50
Equilibrium quantity = 30 units
