Market demand is given as Qd = 200 - 3P. Market supply is given as Qs = 2P + 100. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Name: Market demand is given as Qd = 200 - 3P. Market supply is given as Qs = 2P + 100. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?
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Question

Quizplus · Accepted Answer

In equilibrium, Qd = Qs. Setting 200 - 3P = 2P + 100, solving for P gives P = 20. Substituting P = 20 into either Qd or Qs gives Q = 140.

Market Demand Is Given as Qd = 200 - 3P