(Advanced analysis) The demand for commodity X is represented by the equation P = 100 - 2Q and supply by the equation P = 10 + 4Q. If demand changes from P = 100 - 2Q to P = 130 - Q, the new
Equilibrium quantity is

Question

Quizplus · Accepted Answer

To find the new equilibrium quantity, we need to set the new demand equation equal to the supply equation:

130 - Q = 10 + 4Q

Solving for Q, we get:

5Q = 120

Q = 24

To confirm this, we can substitute Q = 24 into either the demand or supply equation:

P = 100 - 2Q

P = 100 - 2(24)

P = 52

or

P = 10 + 4Q

P = 10 + 4(24)

P = 106

Since the new equilibrium price is between these two values (52 and 106), we can assume that Q = 24 is the correct answer.

(Advanced Analysis) the Demand for Commodity X Is Represented by the Equation