Find the equilibrium price and quantity from the given demand and supply functions. Q d… – Economics NEB 2075 (old course) Solution

To find the equilibrium price and quantity, we set the demand function $Q_{d}$ equal to the supply function $Q_{s}$ because at equilibrium, quantity demanded equals quantity supplied.

Equilibrium point where demand and supply intersect at P* = 41 and Q* = 23.6 (rounded to 23.6 for clarity).

Given: $Q_{d} = 400 - 4 p$ $Q_{s} = 6 p - 10$

Step 1: Set $Q_{d} = Q_{s}$ to find equilibrium price ( $p$ )

$400 - 4 p = 6 p - 10$

Step 2: Solve for $p$

Bring all terms involving $p$ to one side and constants to the other: $400 + 10 = 6 p + 4 p$ $410 = 10 p$

Divide both sides by 10: $p = \frac{410}{10} = 41$

So, the equilibrium price is 41.

Step 3: Find equilibrium quantity ( $Q$ )

Substitute $p = 41$ into either $Q_{d}$ or $Q_{s}$ . Using $Q_{d}$ : $Q_{d} = 400 - 4 (41)$ $Q_{d} = 400 - 164 = 236$

Using $Q_{s}$ to verify: $Q_{s} = 6 (41) - 10 = 246 - 10 = 236$

Both give the same result, confirming equilibrium.

Final Answer:

Equilibrium price = 41
Equilibrium quantity = 236

Find the equilibrium price and quantity from the given demand and supply functions. Q d = 400 4p and Q s = 6p 10

Step 1: Set $Q_{d} = Q_{s}$ to find equilibrium price ( $p$ )

Step 2: Solve for $p$

Step 3: Find equilibrium quantity ( $Q$ )

Final Answer:

Discussion

More Economics questions

Find the equilibrium price and quantity from the given demand and supply functions. Q d = 400 4p and Q s = 6p 10

Step 1: Set Qd​=Qs​ to find equilibrium price (p)

Step 2: Solve for p

Step 3: Find equilibrium quantity (Q)

Final Answer:

Discussion

More Economics questions

Step 1: Set $Q_{d} = Q_{s}$ to find equilibrium price ( $p$ )

Step 2: Solve for $p$

Step 3: Find equilibrium quantity ( $Q$ )