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P = 75 – 2Qd. Supply is represented by the equation P = – 15 + 4Qs. where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Instructions: Round your answer for price to 2 decimal places and enter your quantity as a whole number. a. Using the equilibrium condition Qs = Qd, determine equilibrium price. b. Now determine equilibrium quantity.

Respuesta :

Jseberrio

Answer:

a. Equilibrium price = 45

b. Equilibrium quantity = 15

Explanation:

There are 2 ways of doing this, the long way (putting supply and demand equations in function of P) or the short one (matching the two equations as they are presented)

We are going to do the shortest and most efficient way (the two ways get to the same answer)

Using the equilibrium condition Qs = Qd we match the 2 equations (supply and demand)

[tex]75 - 2Q=-15 + 4Q[/tex]

we operate and find Q:

[tex]4Q + 2Q=75 + 15[/tex]

[tex]6Q=90[/tex]

[tex]Q=\frac{90}{6}=15[/tex]  , 15 is the equilibrium quantity

Now we replace the equilibrium quantity in any of the two equations (it shoud give the same answer) and we find the equilibrium price.

Demand equation: [tex]P = 75 - 2(15)=45[/tex]

Supply equation: [tex]P =-15 + 4(15)=45[/tex]

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