Table 3.3
$\begin{array}{|l|c|}
\hline \text { Demand } & \text { Supply } \
\hline P=80-Q D & P=50+1 / 2 Q S \
\hline Q D=80-P & Q S=2 P-100\
\hline
\end{array}$
-Refer to Table 3.3.The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick.What are the equilibrium price and quantity (in thousands)for Chef Ernie's sushi?
A)$80 and 80 thousand
B)$60 and 20 thousand
C)$50 and 100 thousand
D)$40 and 50 thousand

Question

Table 3.3
 $\begin{array}{|l|c|}
\hline \text { Demand } & \text { Supply } \
\hline P=80-Q D & P=50+1 / 2 Q S \
\hline Q D=80-P & Q S=2 P-100\
\hline
\end{array}$
-Refer to Table 3.3.The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick.What are the equilibrium price and quantity (in thousands)for Chef Ernie's sushi?
A)$80 and 80 thousand
B)$60 and 20 thousand
C)$50 and 100 thousand
D)$40 and 50 thousand

Quizplus · Accepted Answer

To find the equilibrium price and quantity, we need to set the demand and supply equations equal to each other and solve for Q:
$$80-Q_D=50+\frac{1}{2}Q_S$$
$$80-P=50+\frac{1}{2}(2P-100)$$
$$80-P=50+P-50$$
$$Q=20$$
To find the equilibrium price, we can substitute Q = 20 into either the demand or supply equation and solve for P:
$$Q_D=80-P$$
$$20=80-P$$
$$P=60$$
So the equilibrium price is $60 and the equilibrium quantity is 20, which in thousands is 20,000. Therefore, the best choice is B.

Table 33 -Refer to Table 3