Let Q_d = 10 - 2P and Q_s = 3P be the demand and supply curves for Beer.The equilibrium combination (P* and Q*)in the market is ______. A)P^* = 2; Q^* = 5 B)P^* = 5; Q^* = 0 C)P^* = 2; Q^* = 6 D)P^* = 6; Q^* = 2

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Quizplus · Accepted Answer

To find the equilibrium combination in the market, we need to set demand equal to supply and solve for P and Q. 10 - 2P = 3P 10 = 5P P = 2 So the equilibrium price is P* = 2. To find the equilibrium quantity, we can plug this back into either the demand or supply equation. Q* = 3P Q* = 3(2) Q* = 6 So the equilibrium quantity is Q* = 6. Therefore, the correct answer is C (P^* = 2; Q^* = 6).

Let Qd = 10 - 2P and Qs = 3P

Let Q_d = 10 - 2P and Q_s = 3P