Market demand is given as Qd = 95 - P. Market supply is given as Qs = 3P + 15. In a perfectly competitive equilibrium, what will be the quantity?

Name: Market demand is given as Qd = 95 - P. Market supply is given as Qs = 3P + 15. In a perfectly competitive equilibrium, what will be the quantity?
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Quizplus · Accepted Answer

In equilibrium, quantity demanded equals quantity supplied: 95 - P = 3P + 15. Solving for P gives P = 20. Substituting P = 20 into either Qd or Qs gives Q = 75.

Market Demand Is Given as Qd = 95 - P