The market for cod liver oil pills is characterized by the demand and supply equations: Q^D = 100 - 4P and Q^S = -20 + 2P, where P is the price per bottle and Q is the quantity of bottles. What is the equilibrium price?

Question

Quizplus · Accepted Answer

To find the equilibrium price, set the demand equation equal to the supply equation and solve for P: 100 - 4P = -20 + 2P. Combining like terms gives 6P = 120, so P = 20.

The Market for Cod Liver Oil Pills Is Characterized by the Demand