Market demand is given as Qd = 200 - 3P.Market supply is given as Qs = 2P + 100.In a perfectly competitive equilibrium, what will price and quantity be?
A) Price will be $20, and quantity will be 140.
B) Price will be $50, and quantity will be 260.
C) Price will be $100, and quantity will be 300.
D) Price will be $140, and quantity will be 380.

Question

Market demand is given as Qd = 200 - 3P.Market supply is given as Qs = 2P + 100.In a perfectly competitive equilibrium, what will price and quantity be?  
A) Price will be $20, and quantity will be 140. 
B) Price will be $50, and quantity will be 260. 
C) Price will be $100, and quantity will be 300. 
D) Price will be $140, and quantity will be 380.

Quizplus · Accepted Answer

In a perfectly competitive market, equilibrium occurs where quantity demanded equals quantity supplied (Qd = Qs). Substituting the given equations: 200 - 3P = 2P + 100. Solving for P gives P = $20. Substituting P = $20 into either the demand or supply equation gives Q = 140.

Market Demand Is Given as Qd = 200 - 3P