Market demand is given as Qd =150 - 3P.Market supply is given as Qs = 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Question

Quizplus · Accepted Answer

In a perfectly competitive equilibrium, market demand must equal market supply. 
Setting Qd = Qs:
150 - 3P = 2P 
150 = 5P 
P = $30 
Substituting P back into either the demand or supply equation gives the quantity:
Q = 150 - 3($30) = 60 
Therefore, the equilibrium price is $30 and the equilibrium quantity is 60. The best choice is B.

Market Demand Is Given as Qd =150 - 3P