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Answered Same Day Sep 11, 2021

Solution

Taha answered on Sep 11 2021

155 Votes

1. Qd = 18 - 3P (demand equation)
Qs = - 3 + 4P (supply equation)
We know that at equili
ium, Qd = Qs
=> 18 - 3P = - 3 + 4P
=> 7P = 21 => Pm = 21/7 = 3
Now, putting the value of Pm in any of the given equation, we get,
Q = 18 - 3P
=> Q = 18 - 3x3 = 18 - 9 = 9.
2. Again, we differentiate the two equations with respect to Q, we get,
Demand curve => Qd = 18- 3P
=> 3P = 18 - Q
=> P = 6 - (Q/3)
=> dP/dQ = - 1/3 < 0 (negatively sloped)
=>...

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