economics

Suppose the market demand for good A given by Qd= 300 -20 P and the market supply for Good A is given by Qs=20P-100,where P=price of Good A.
Q;Graph the supply and demand schedules for Good A using P5 through P15 as the value of P.
Q; In equilibrium, how many good A would be.sold and at what prices?
Q: what would happen if supplier set the price of goof A at P15? Explain the market adjustment process.

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  1. At some price P the supply just meets the demand.
    Qd= 300 -20 P
    =
    Qs=20P-100
    so
    300 - 20 P = 20 P - 100
    40 P = 400
    P = 10
    Q = 200 - 100 = 100

    If P is fixed at 15 then fewer will be bought
    Qdemand = 300 - 20(15)
    = 300 - 300
    = 0
    No one is enough to pay 15

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    Damon

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