Suppose the equation for a market demand curve
is QD = 15 − 0.2P and the equation for a market supply curve is Qs = −3+ 0.4P
so you want the intersection?
15 - .2 p = -3 + .4 p
.6 p = 18
p = 180/6 = 30
q = -3+12 = 9
O=25;Q=10
To find the equilibrium price and quantity in this market, we need to set the quantity demanded equal to the quantity supplied.
Let's set QD (quantity demanded) equal to Qs (quantity supplied) and solve for P (price):
QD = Qs
15 - 0.2P = -3 + 0.4P
First, let's combine like terms:
0.4P + 0.2P = 15 + 3
0.6P = 18
Now, divide both sides of the equation by 0.6:
P = 18 / 0.6
P = 30
So the equilibrium price in this market is 30.
Now, let's substitute the equilibrium price back into one of the original equations to find the equilibrium quantity.
Using the demand equation:
QD = 15 - 0.2P
QD = 15 - 0.2(30)
QD = 15 - 6
QD = 9
Therefore, the equilibrium quantity is 9.
In summary, the equilibrium price in this market is 30 and the equilibrium quantity is 9.