Suppose demand for a good is Q_D = 100 - P and supply is Q_S= -20 + P.What is the amount consumers pay producers?

Question

Quizplus · Accepted Answer

To find the amount consumers pay producers, we need to find the equilibrium price where demand equals supply. First, we set Q_D equal to Q_S: 100 - P = -20 + P Solving for P: 2P = 120 P = 60 Therefore, the equilibrium price is $60. To find the amount consumers pay, we can simply plug this price back into the demand equation: Q = 100 - 60 = 40 Therefore, consumers pay producers: 40 * $60 = $2400 Thus, the correct choice is (B).

Suppose Demand for a Good Is QD = 100 -

Suppose Demand for a Good Is Q_D = 100 -