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Managerial Economics

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Can someone please help me solve this equation: Qs=1,050 and Qd=2000-2.5P. Solve for the equilibrium price 'P'

  • Managerial Economics - ,


  • Managerial Economics - ,

    1050 = 2000 + -2.5(P)

    1050 = 2000 + -2.5P

    Solving for variable 'P'.

    Move all terms containing P to the left, all other terms to the right.

    Add '2.5P' to each side of the equation.
    1050 + 2.5P = 2000 + -2.5P + 2.5P

    Combine like terms: -2.5P + 2.5P = 0.0
    1050 + 2.5P = 2000 + 0.0
    1050 + 2.5P = 2000

    Add '-1050' to each side of the equation.
    1050 + -1050 + 2.5P = 2000 + -1050

    Combine like terms: 1050 + -1050 = 0
    0 + 2.5P = 2000 + -1050
    2.5P = 2000 + -1050

    Combine like terms: 2000 + -1050 = 950
    2.5P = 950

    Divide each side by '2.5'.
    P = 380

    P = 380

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