Using the following demand and supply functions of a commodity x, compute the equilibrium price and quantity. Qd = 100 - 2P Qs = 40 + 4P

Using the following demand and supply functions of a commodity x, compute the equilibrium price and
quantity.
Qd = 100 - 2P
Qs = 40 + 4P

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At equilibrium, Qs = Qd
therefore 40 + 4P = 100 – 2P
4P – 2P = 100 – 40
6P = 60
P = (60/6)
PX = 10

QS = 40 + 4P but P = 10
therefore QS = 40 + 4(10) = 80 units of
X Qd = 100 – 2P but again P = 10
therefore Qd = 100 – 2(10) = 80 units of
X Thus, Q = QS = Qd = 80 units of X

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Wilfykil answered the question on February 4, 2019 at 11:00

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