Suppose the domestic supply (Q^S) and demand (Q^D)for MP3 players in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { S } = - 25 + 10 P \ Q ^ { D } = 875 - 5 P \end{array}$$ In the absence of international trade in MP3 players, what will be the price of MP3 players in the United States? A)$60 B)$65 C)$90 D)$70

Question

Quizplus · Accepted Answer

The equilibrium price is found where Qs = Qd. So, we set the two equations equal to each other and solve for P:-25 + 10P = 875 - 5P15P = 900P = $60

Suppose the Domestic Supply (QS) and Demand (QD)for MP3 Players QS=−25+10PQD=875−5P\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}QS=−25+10PQD=875−5P​

Suppose the Domestic Supply (Q^S) and Demand (Q^D)for MP3 Players $\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}$