If the Qd = (20 million)- (2 million × P)and QS = (0)+ (3 million × P), the equilibrium price for the product is________ .

Question

Quizplus · Accepted Answer

The equilibrium price is found where quantity demanded (Qd) equals quantity supplied (QS). Setting Qd equal to QS and solving for P gives us the equilibrium price. Qd = QS => (20 million) - (2 million × P) = (3 million × P). Solving this equation for P gives us P = $4.

If the Qd = (20 Million)- (2 Million × P)and