Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then the quantity demanded is ______ and the quantity supplied is _____. A) 60;20 B) 35;45 C) 45;35 D) 20;60 E) 40;40

Question

Quizplus · Accepted Answer

To find the quantity demanded, we plug in the given price of 30 into the demand equation: 
QD = 60 - 0.5(30) 
QD = 45 
To find the quantity supplied, we plug in the same price of 30 into the supply equation: 
QS = 20 + 0.5(30) 
QS = 35 
Therefore, the quantity demanded is 45 and the quantity supplied is 35. We choose answer choice C.

Suppose That the Demand Curve for a Good Is Given