(Advanced analysis) The demand for commodity X is represented by the equation P = 100 - 2Q and supply by the equation P = 10 + 4Q. If demand changes from P = 100 - 2Q to P = 130 - Q, the new equilibrium quantity is

Question

Quizplus · Accepted Answer

To find the new equilibrium quantity, we need to find the intersection point of the new demand and supply curve.

The new demand curve is P = 130 - Q, which means we can find the new quantity demanded by setting this equal to the original supply equation and solving for Q:
130-Q = 10 + 4Q
Simplifying: 130 = 10 + 5Q
Solving for Q: Q = 24

Therefore, the new equilibrium quantity is 24.

(Advanced Analysis) the Demand for Commodity X Is Represented by the Equation