Scenario: The retail market for beef in Argentina is given by the following demand and supply schedules, where the price is in Argentine pesos per kilo and the quantity is millions of kilos per year.
Demand: QD = 220 P,
Supply: QS = 20 + P.

-Refer to the scenario above.The market equilibrium quantity is ________ million kilos of beef per year and the market equilibrium price is ________ pesos per kilo.
A) 80; 140
B) 100; 120
C) 60; 80
D) None of the above

Question

Scenario: The retail market for beef in Argentina is given by the following demand and supply schedules, where the price is in Argentine pesos per kilo and the quantity is millions of kilos per year.
Demand: QD = 220 P,
Supply: QS = 20 + P.
 
-Refer to the scenario above.The market equilibrium quantity is ________ million kilos of beef per year and the market equilibrium price is ________ pesos per kilo.
A) 80; 140 
B) 100; 120 
C) 60; 80 
D) None of the above

Quizplus · Accepted Answer

To find the market equilibrium quantity, we set the demand equal to the supply:

220P = 20 + P

Solving for P, we get:

P = 100

Plugging back into either the demand or supply equation, we can find the equilibrium quantity:

Q = 220(100) = 22,000 million kilos

Therefore, the market equilibrium quantity is 22,000 million kilos of beef per year and the market equilibrium price is 100 pesos per kilo, which corresponds to option B.

Scenario: the Retail Market for Beef in Argentina Is Given