If S = 1P represents a country's home supply curve and D = 100 - 1P represents its home demand curve, then the equilibrium price and quantity in autarky are:

Question

Quizplus · Accepted Answer

To find the equilibrium price and quantity, set the supply and demand equations equal to each other: 1P = 100 - 1P. Solving for P gives P = $50. Substituting P = $50 into either the supply or demand equation gives a quantity of 50 units.

If S = 1P Represents a Country's Home Supply Curve