A market can be described by the equations Q_d = 50 - 3P and Q_s = 2P. What are the equilibrium price and quantity in this market? A) The equilibrium price is $20 and the equilibrium quantity is 10 units. B) The equilibrium price is $50 and the equilibrium quantity is 100 units. C) The equilibrium price is $30 and the equilibrium quantity is 10 units. D) The equilibrium price is $10 and the equilibrium quantity is 20 units.

Question

Quizplus · Accepted Answer

To find the equilibrium, set Qd = Qs: 50 - 3P = 2P. Solving for P gives P = 10. Substitute P = 10 into either equation to find Q: Q = 2(10) = 20. Thus, the equilibrium price is $10 and the equilibrium quantity is 20 units.

A Market Can Be Described by the Equations Qd =

A Market Can Be Described by the Equations Q_d =