The following equations represent the demand and supply for silver pendants. QD = 50 - 2P
QS = -10 + 2P
What is the equilibrium price (P)and quantity (Q - in thousands)of pendants?
A)P = $15;Q = 20 thousand
B)P = $50;Q = 10 thousand
C)P = $20;Q = 15 thousand
D)P = $10;Q = 30 thousand

Question

Quizplus · Accepted Answer

At equilibrium, QD = QS. Substituting the given equations, we get:50 - 2P = -10 + 2P4P = 60P = $15Substituting P = $15 into either QD or QS, we get:QD = 50 - 2(15) = 20 thousandQS = -10 + 2(15) = 20 thousandTherefore, the equilibrium price is $15 and the equilibrium quantity is 20 thousand pendants.

The Following Equations Represent the Demand and Supply for Silver