Suppose that the demand for movies is given by Q^d = 30 - 2 × P_Movies and the supply is given by Q^s = 2 + 2 × P_Movies.What is the equilibrium price and quantity of movies? A) P_Movies = $7, Q = 30 B) P_Movies = $2, Q = 30 C) P_Movies = $4, Q = 28 D) P_Movies = $7, Q = 16

Question

Quizplus · Accepted Answer

At equilibrium, Q^d = Q^s. Setting 30 - 2P = 2 + 2P, solving gives P = $7. Substituting P = $7 into either equation gives Q = 16.

Suppose That the Demand for Movies Is Given by Qd

Suppose That the Demand for Movies Is Given by Q^d