A market can be described by the equations Q_d = 100 - P and Q_s = P. What are the equilibrium price and quantity in this market? A) The equilibrium price is $50 and the equilibrium quantity is 50 units. B) The equilibrium price is $100 and the equilibrium quantity is 100 units. C) The equilibrium price is $0 and the equilibrium quantity is 0 units. D) The equilibrium price is $0 and the equilibrium quantity is 100 units.

Question

Quizplus · Accepted Answer

To find the equilibrium price and quantity, we need to set the demand function Q_d equal to the supply function Q_s and solve for P. 100 - P = P 2P = 100 P = 50 Now that we know the equilibrium price, we can substitute this value back into either the demand or supply function to find the equilibrium quantity. Using the demand function: Q_d = 100 - P = 100 - 50 = 50 units Therefore, the equilibrium price is $50 and the equilibrium quantity is 50 units.

A Market Can Be Described by the Equations Qd =

A Market Can Be Described by the Equations Q_d =