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

The equilibrium price is found by setting Qᴰ = Qˢ and solving for P.50 - 2P = -10 + 2P4P = 60P = $15The equilibrium quantity is then found by substituting P = $15 into either Qᴰ or Qˢ.Qᴰ = 50 - 2($15) = 20 thousandQˢ = -10 + 2($15) = 20 thousand

The Following Equations Represent the Demand and Supply for Silver