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Qs = 100 + 3PQd = 400 – 2Pwhere Qs is the quantity supplied Qd is the quantity...
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The quantity supplied in terms of the price (P) is Q_s = 100 + 3*P and the quantity demanded is Q_d = 400 - 2*P. At equilibrium, the quantity demanded is equal to the quantity supplied. The price at which the two quantities are at equilibrium is given by solving : Q_s = Q_d
=> 100 + 3P = 400 - 2P
=> 300 - 5P
=> P = 60
At P = 60, Q_s = 100 + 180 = 280 and Q_d = 400 - 120 = 280.
The equilibrium quantity is 280 and the equilibrium price is 60
Posted by justaguide on February 15, 2013 at 6:10 AM (Answer #1)
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