If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d).

Question

Quizplus · Accepted Answer

The equilibrium quantity Q* is found where the demand curve P = a - bQ intersects with the supply curve P = c + dQ. Setting the two equations equal to each other and solving for Q gives Q* = (a - c) / (b + d).

If the Demand and Supply Curves Are Described by the Following