Market demand is given as Qd = 300 - 0.5P.Market supply is given as Qs = 50 + 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Name: Market demand is given as Qd = 300 - 0.5P.Market supply is given as Qs = 50 + 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?
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Question

Quizplus · Accepted Answer

In equilibrium, Qd = Qs. Setting 300 - 0.5P = 50 + 2P and solving for P gives P = $100. Substituting P = $100 into either Qd or Qs gives Q = 250.

Market Demand Is Given as Qd = 300 - 0