Use the following information to answer the following questions.
Market for used cars:
Demand: Q d = 154,000 - 86P
Supply: Q s = -100 + 14P
-What would be the equilibrium quantity for used cars?
A) 100
B) 154,100
C) 21,474
D) 1,541
E) 153,900

Question

Quizplus · Accepted Answer

To find the equilibrium quantity, set the demand equal to the supply: 154,000 - 86P = -100 + 14P. Solving for P gives the equilibrium price, and substituting back into either the demand or supply equation gives the equilibrium quantity, which is 21,474.

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