If the equation for market demand curve is Qd = 220-5P and for market supply curve is Qs=-20+3P Find equilibri

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If the equation for market demand curve is Qd = 220-5P and for market supply curve is Qs=-20+3P Find equilibri

ECO

2007-03-25 17:52:17 · 3 answers · asked by Anonymous in Social Science ➔ Economics

3 answers

E=S=D
Qs=Qd

220-5p=-20+3p
240=8p
p=30

Q=220-5(30)
=70

so it's equilibrium when p=30 and Q=70

2007-03-26 02:45:03 · answer #1 · answered by szeplany 2 · 0⤊ 0⤋

Set the 2 equations equal to each other and solve for P. That will give you the equilibrium price. Substitute your answer for P into the equations, and both should yield the same result. That is your equilibrium quantity.

2007-03-26 01:05:48 · answer #2 · answered by jbarnych 2 · 0⤊ 0⤋

Eeeek! You're smart! :-)

2007-03-26 00:59:45 · answer #3 · answered by Eve 4 · 0⤊ 0⤋