Market research has revealed the following information about the market for chocolate bars. The demand schedule can be represented by the equation QD=1,600-300P, where QD is the quantity demanded and P is the price. The supply schedule can be represented by the equation QS=1,400+700P where Qs is the quantity supplied. Calculate the equilibrium price and quantity in the market for chocolate bars.

Question

Market research has revealed the following information about the market for chocolate bars. The demand schedule can be represented by the equation QD=1,600-300P, where QD is the quantity demanded and P is the price. The supply schedule can be represented by the equation QS=1,400+700P where Qs is the quantity supplied. Calculate the equilibrium price and quantity in the market for chocolate bars.

Answer 1

p=.2

Q=1540

Answer 2

To find the equilibrium price and quantity in the market for chocolate bars, we need to set the quantity demanded equal to the quantity supplied.

Setting QD equal to QS, we have:

QD = QS

1,600 - 300P = 1,400 + 700P

Rearranging the equation, we get:

300P + 700P = 1,600 - 1,400

1,000P = 200

Dividing both sides by 1,000, we have:

P = 0.2

So the equilibrium price in the market for chocolate bars is $0.20.

To find the equilibrium quantity, we substitute the equilibrium price into the demand or supply equation.

Using the demand equation QD = 1,600 - 300P, we have:

QD = 1,600 - 300(0.2)

QD = 1,600 - 60

QD = 1,540

So the equilibrium quantity in the market for chocolate bars is 1,540 units.

Answer 3

To calculate the equilibrium price and quantity in the market for chocolate bars, we need to find the point where the quantity demanded (QD) equals the quantity supplied (QS).

Given the demand equation: QD = 1,600 - 300P
And the supply equation: QS = 1,400 + 700P

Setting QD equal to QS, we have:
1,600 - 300P = 1,400 + 700P

Now, let's solve for P:
Combine like terms:
-300P - 700P = 1,400 - 1,600
-1,000P = -200

Divide both sides by -1,000:
P = -200 / -1,000
P = 0.2

So, the equilibrium price in the market for chocolate bars is 0.2.

To calculate the equilibrium quantity, we can substitute the equilibrium price into either the demand or supply equation. Let's use the demand equation:
QD = 1,600 - 300P
QD = 1,600 - 300(0.2)
QD = 1,600 - 60
QD = 1,540

Therefore, the equilibrium quantity in the market for chocolate bars is 1,540.

Therefore, the equilibrium price is 0.2 and the equilibrium quantity is 1,540 in the market for chocolate bars.

p=.2

Sumptuous

To find the equilibrium price and quantity in the market for chocolate bars, we need to set the quantity demanded equal to the quantity supplied.

To calculate the equilibrium price and quantity in the market for chocolate bars, we need to find the point where the quantity demanded (QD) equals the quantity supplied (QS).