Suppose that the demand and supply curves in the market for apples have the following functional forms: Q D = 250 - 4p and QS = 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: 
250 - 4p = 10 + p 
Solving for p, we get: 
5p = 240 
p = 48 
Plugging this value of p into either the demand or supply function, we get: 
Q = 250 - 4(48) = 58 
Therefore, the equilibrium quantity and price are Q = 58 and p = 48. The correct answer choice is B.

Suppose That the Demand and Supply Curves in the Market