Market demand is given as Qd = 190 - 2P. Market supply is given as Qs = P + 10. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, equilibrium occurs where quantity demanded equals quantity supplied (Qd = Qs). Substituting the given equations, we get 190 - 2P = P + 10. Solving for P, we get 3P = 180, so P = 60. Substituting P = 60 into either the demand or supply equation, we find Q = 70. Therefore, the correct answer is that the price will be $60 and the quantity will be 70.

Market Demand Is Given as Qd = 190 - 2P