Demand = 20000-7price
Supply = 10000+8price
Find out the number of unit on equilibrium demand and supply
To find the equilibrium quantity, we need to set the quantity demanded equal to the quantity supplied.
Given:
Demand: Qd = 20000 - 7P
Supply: Qs = 10000 + 8P
To find the equilibrium quantity, we need to set Qd equal to Qs and solve for P:
20000 - 7P = 10000 + 8P
Rearrange the equation to solve for P:
20000 - 10000 = 8P + 7P
10000 = 15P
Now, divide both sides by 15:
P = 10000 / 15
P = 666.67 (rounded to two decimal places)
Now that we have the price at equilibrium, we can substitute it back into either the demand or supply equation to find the equilibrium quantity.
Let's use the demand equation to find the equilibrium quantity:
Qd = 20000 - 7P
Qd = 20000 - 7(666.67)
Qd = 20000 - 4666.67
Qd = 15333.33 (rounded to two decimal places)
Therefore, at equilibrium, the quantity demanded and supplied is approximately 15,333.33 units.