(Advanced analysis)Answer the question on the basis of the following information.The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. Refer to the given information.The equilibrium price for X is:

Question

Quizplus · Accepted Answer

Equilibrium price is the price at which the quantity demanded is equal to the quantity supplied.

Setting the demand and supply equations equal to each other:

10 - 0.2Q = 2 + 0.2Q

Simplifying:

0.4Q = 8

Q = 20

Substituting Q = 20 into either the demand or supply equation:

P = 10 - 0.2(20) = $6

Therefore, the equilibrium price for commodity X is $6.

(Advanced Analysis)Answer the Question on the Basis of the Following