The market demand curve for a perfectly competitive industry is QD = 20 - 2P. The market supply curve is QS = 10 + 3P. The market will be in equilibrium if

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The market equilibrium occurs where the quantity demanded equals the quantity supplied. Setting QD = QS, we get:20 - 2P = 10 + 3P5P = 10P = 2Substituting P = 2 into either QD or QS, we get:QD = 20 - 2(2) = 16QS = 10 + 3(2) = 16Therefore, the market equilibrium is at P = 2 and Q = 16.

The Market Demand Curve for a Perfectly Competitive Industry Is