In a perfect competitive market, industry demand is P = 850 – 2Q, and industry supply is P = 250 + 4
I think something is missing and something is odd. the supply equation doesnt have a Q in it and the demand equation has some weird character.
Regardless, set supply=demand and solve.
To find the equilibrium price and quantity in a perfectly competitive market, we need to set the industry demand equal to the industry supply and solve for the equilibrium values.
The industry demand equation is given as P = 850 - 2Q, where P represents the price and Q represents the quantity.
The industry supply equation is given as P = 250 + 4Q, where P represents the price and Q represents the quantity.
Setting the industry demand equal to the industry supply, we have:
850 - 2Q = 250 + 4Q
To solve for the equilibrium quantity, we can rearrange the equation to isolate Q:
850 - 250 = 4Q + 2Q
600 = 6Q
Q = 100
Now that we have the equilibrium quantity, we can substitute this value back into either the industry demand or the industry supply equation to find the equilibrium price.
Using the industry demand equation, we have:
P = 850 - 2Q
P = 850 - 2(100)
P = 850 - 200
P = 650
Therefore, in a perfectly competitive market, the equilibrium price is $650 and the equilibrium quantity is 100 units.