Market demand is given as Qd = 300 - 2P.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 quantity demanded should be equal to the quantity supplied, i.e. Qd = Qs.

Substituting the given market demand and supply equations, we get:

300 - 2P = 2P + 100

Solving for P, we get P = $50.

Substituting this value of P in either equation, we get the quantity as Q = 200.

Hence, the correct choice is B.

Market Demand Is Given as Qd = 300 - 2P