Market demand is given as Qd = 140 - 5P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

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In a perfectly competitive equilibrium, the price and quantity traded in the market are determined by the intersection of the market demand and supply curves. The market demand curve is given by Qd = 140 - 5P, and the market supply curve is given by Qs = 2P. To find the equilibrium price and quantity, we set Qd = Qs and solve for P:140 - 5P = 2P7P = 140P = $20Substituting P = $20 into either the demand or supply curve, we find that the equilibrium quantity is:Qd = 140 - 5P = 140 - 5(20) = 40Qs = 2P = 2(20) = 40Therefore, the equilibrium price is $20 and the equilibrium quantity is 40.

Market Demand Is Given as Qd = 140 - 5P