Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. What is the equilibrium quantity?

Question

Quizplus · Accepted Answer

To find the equilibrium quantity, set the demand and supply equations equal to each other: 1,000/P = 10P. Solving for P gives P^2 = 100, so P = 10. Substituting P = 10 into either the demand or supply equation gives the equilibrium quantity of 100.

Suppose That the Demand and Supply Curves for a Good