Using the information below answer the following questions.
If demand is :Qd = 400.00 - 15.00P and Supply is: Qs = 50.00 + 15.00P
Where: Qd = quantity of the good demanded.
Qs = quantity of the good supplied.
P = price of the good.
Part 1: The equilibrium price is (don't include $ sign)
Thanx
At equilibrium, Qd=Qs. So, 400-15P = 50+15P. Use algebra and solve for P.
To find the equilibrium price, we need to set the quantity demanded equal to the quantity supplied and solve for the price (P).
Equating the quantity demanded (Qd) and the quantity supplied (Qs):
Qd = Qs
400 - 15P = 50 + 15P
Combining like terms:
350 = 30P
Dividing both sides by 30:
P = 11.67
Therefore, the equilibrium price is 11.67.