The demand curve is P = 800 - 25QD. The supply curve is P = 500 + 25QS. At market equilibrium, the equilibrium quantity is ________ and the equilibrium price is ________.

Question

Quizplus · Accepted Answer

At market equilibrium, demand equals supply, so we can set the two equations equal to each other and solve for Q:

800 - 25QD = 500 + 25QS

Simplifying, we get:

300 = 25(QS + QD)

300/25 = QS + QD

12 = QS + QD

Now we can plug this value back into either the demand or supply equation to find the equilibrium price:

P = 800 - 25QD

P = 800 - 25(12)

P = 500

Therefore, the equilibrium quantity is 12 and the equilibrium price is $6.0, so the correct answer is D.

The Demand Curve Is P = 800 - 25QD