Market demand is given as Q_D= 300 - 2P.Market supply is given as Q_S= 2P + 100.In a perfectly competitive equilibrium,what will be price and quantity

Question

Quizplus · Accepted Answer

In a perfectly competitive equilibrium, the market demand and supply curves intersect at a point where the quantity demanded equals quantity supplied. Setting Q_D = Q_S, we have: 300 - 2P = 2P + 100 Solving for P: 4P = 200 P = 50 Substituting P back to either the market demand or supply equation to obtain the equilibrium quantity: Q_D = 300 - 2(50) = 200 Therefore, the equilibrium price is $50 and the equilibrium quantity is 200. Choice B is the best answer.

Market Demand Is Given as QD = 300 - 2P

Market Demand Is Given as Q_D= 300 - 2P