question archive Assume the following demand and supply equations
Assume the following demand and supply equations
Subject:MarketingPrice:2.88 Bought3
Assume the following demand and supply equations.
Demand: Q = 480 - 35P
Supply: Q = 200 + 16P
What is the equilibrium price? What is the equilibrium quantity?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
The equilibrium price is such that quantity demanded is equal to quantity supplied, i.e.,
- 480 - 35P = 200 + 16P
- 280 = 51P
- P = 5.49
Equilibrium quantity Q = 480 - 35 * 5.49 = 287.85.
