Suppose that the demand and supply curves in the market for apples have the following functional forms: Q_D = 250 - 4p and Q_S = 10 + p.The equilibrium quantity and price would then be

Question

Quizplus · Accepted Answer

To find the equilibrium quantity and price, we need to set the quantity demanded equal to the quantity supplied and solve for p. 250 - 4p = 10 + p 240 = 5p p = 48 Substituting p = 48 back into either the demand or supply curve gives us the equilibrium quantity: Q_D = 250 - 4(48) = 58 Therefore, the equilibrium quantity and price are Q = 58 and p = 48, respectively. Choice B is the only answer that matches these values.

Suppose That the Demand and Supply Curves in the Market