Question

Given market demand Qd=50-p, and market supply p=Qs+5.Find the market equilibrium price and quantity ?​

Answer 1

Answer:

• $27.5
• 22.5 units

Explanation:

We know that quantity supplied = quantity demanded.

p = Qs + 5 -> Qs = p - 5

Qd = 50 - p

Price:

p - 5 = 50 - p

p = 55 - p

2p = 55

p = $27.5

Quantity:

27.5 - 5 = 22.5 units

Best of Luck!