If the Qd = (50 million)- (4 million × P)and QS = (2 million)+ (4 million × P), the equilibrium quantity for the product is _________ .

Question

Quizplus · Accepted Answer

At equilibrium, Qd = Qs. Setting the two equations equal to each other and solving for P gives us the equilibrium price, which can then be used to find the equilibrium quantity. Solving the equations (50 million) - (4 million × P) = (2 million) + (4 million × P) leads to 8 million × P = 48 million, so P = 6. Substituting P = 6 back into either the demand or supply equation gives us the equilibrium quantity of 26 million.

If the Qd = (50 Million)- (4 Million × P)and