Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Question

Quizplus · Accepted Answer

In a perfectly competitive equilibrium, the market demand and supply curves intersect. Substituting the given demand and supply functions, we get:80 - P = 3P4P = 80P = $20Substituting P = $20 into either the demand or supply function, we get:Qd = 80 - $20 = 60Qs = 3($20) = 60Therefore, the price in the market will be $20 and the quantity traded will be 60.

Market Demand Is Given as Qd = 80 - P