Suppose the demand and supply curves for shampoo are given by
Q^D = 18 - 5P
Q^S = -3 + 2P
Where Q^D is the quantity of shampoo demanded (in thousands of bottles) , Q^S is the quantity supplied, and P is the price of shampoo (in dollars per bottle) . The equilibrium price in this market is ____ and the equilibrium quantity is ____.

Question

Quizplus · Accepted Answer

To find the equilibrium price and quantity, set the quantity demanded equal to the quantity supplied: 18 - 5P = -3 + 2P. Solving for P gives P = $3. Substituting P = $3 into either equation gives the equilibrium quantity of 3,000 bottles.

Suppose the Demand and Supply Curves for Shampoo Are Given