The demand curve is P = 800 - 25Q_D.The supply curve is P = 500 + 25Q_S.At market equilibrium, the equilibrium quantity is _______ and the equilibrium price is _______ .

Question

Quizplus · Accepted Answer

At market equilibrium, the quantity demanded equals the quantity supplied. Setting the demand and supply equations equal to each other gives: 800 - 25Q = 500 + 25Q. Solving for Q gives 300 = 50Q, or Q = 6. Substituting Q = 6 into either the demand or supply equation to find the price, P = 800 - 25(6) = 650 or P = 500 + 25(6) = 650. Therefore, the equilibrium quantity is 6 and the equilibrium price is 650.

The Demand Curve Is P = 800 - 25QD

The Demand Curve Is P = 800 - 25Q_D