Market demand is Qd = 200 - 4P. Market supply is Qs = 6P. In a perfectly competitive equilibrium, what will be the price?

Name: Market demand is Qd = 200 - 4P. Market supply is Qs = 6P. In a perfectly competitive equilibrium, what will be the price?
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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 200 - 4P = 6P, leading to 10P = 200, and solving for P gives P = $20.

Market Demand Is Qd = 200 - 4P