A market can be described by the equations Qd = 100 - P and Qs = P. What are the equilibrium price and quantity in this market?

Question

Quizplus · Accepted Answer

To find the equilibrium price and quantity, we need to set the quantity demanded equal to the quantity supplied and solve for P.
Qd = Qs
100 - P = P
100 = 2P
P = 50
Substituting this back into either the demand or supply equation, we get:
Q = 100 - P = 100 - 50 = 50
Therefore, the equilibrium price is $50 and the equilibrium quantity is 50 units.

A Market Can Be Described by the Equations Qd =