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.The equilibrium quantity is ______ and the equilibrium price is _____. A) 20;60 B) 60;20 C) 60;60 D) 40;40 E) 45;30

Question

Quizplus · Accepted Answer

To find the equilibrium quantity, we need to set the demand and supply equations equal to each other: Q_D = Q_S 60 - 0.5P_D = 20 + 0.5P_S Simplifying and solving for P gives us: 40 = P_D = P_S Substituting this back into either the demand or supply equation gives us: Q_D = 60 - 0.5(40) = 40 Therefore, the equilibrium quantity is 40. Substituting this into either the demand or supply equation gives us: P_D = P_S = 40 Therefore, the equilibrium price is 40. Therefore, the correct answer is D (40;40).

Suppose That the Demand Curve for a Good Is Given