Market demand is given as Qd = 200 - 3P.Market supply is given as Qs = 2P + 100.In a perfectly competitive equilibrium,what will be price and quantity?

Question

Quizplus · Accepted Answer

In a perfectly competitive equilibrium, the market demand and supply curves intersect. Setting Qd = Qs, we get 200 - 3P = 2P + 100. Solving for P, we get P = $20. Substituting this back into either Qd or Qs, we get Q = 140.

Market Demand Is Given as Qd = 200 - 3P