If a demand curve and a supply curve can be stated functionally as Q_d= 100 - 5P; and Q_s= 90 + 5P, respectively, then the equilibrium quantity and price (Q, P)would be

Question

Quizplus · Accepted Answer

To find the equilibrium quantity and price, we need to set the supply and demand functions equal to each other and solve for P:
100 - 5P = 90 + 5P
Simplifying: 
10 = 10P 
P = 1 
Then we can substitute P = 1 into either the demand or supply function to find Q: 
Q = 100 - 5(1) = 95 
Therefore, the equilibrium quantity and price are (Q, P) = (95, 1), which is choice C.

If a Demand Curve and a Supply Curve Can Be