Assume that the demand for a commodity is represented by the equation P=10-.2Qdc and supply by the...

Question

Assume that the demand for a commodity is represented by the equation P=10-.2Qdc and supply by the equation P=2+.2Qs, where Qd and Qs are quantity demanded and quantity supplied, respecitvely, and P is price. Use the equilibrium condition Qs = Qd. Solve the attached problems.

David · Accepted Answer

1: Assume that demand for a commodity is represented by the equation P = 10 – 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd ,
1: Solve the equations to determine equilibrium price.  
2: Now determine equilibrium quantity.
3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.
4:

Assume that the demand for a commodity is represented by the equation P=10-.2Qdc and supply by the equation P=2+.2Qs, where Qd and Qs are quantity demanded and quantity supplied, respecitvely, and P...

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