Suppose the quantity demanded for a security is
B_D= 150 ? 0.1b,
And the quantity supplied of the security is
B_S = 50 + 0.1b,
Where b is the price of the security in dollars.The equilibrium quantity of the security is

Question

Quizplus · Accepted Answer

At equilibrium, quantity demanded equals quantity supplied: 150 - 0.1b = 50 + 0.1b. Solving for b gives b = 100. Substituting b = 100 into either equation gives the equilibrium quantity as 140.

Suppose the Quantity Demanded for a Security Is