Market demand is given as Qd =150 - 3P.Market supply is given as Q_S= 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market

Question

Quizplus · Accepted Answer

To find the equilibrium price and quantity, we need to equate market demand and market supply, i.e. Qd = QS. 
Substituting the given equations, we get:
150 - 3P = 2P
5P = 150
P = $30
Now, substituting P in either Qd or QS, we get:
Qd = 150 - 3(30) = 60
QS = 2(30) = 60
Hence, the equilibrium price will be $30 and the equilibrium quantity traded in the market will be 60 units. Therefore, the best choice is B.

Market Demand Is Given as Qd =150 - 3P