question archive Which of the following represents the market clearing price and market clearing quantity for CDs in a market where the demand and supply equations are D = 240 - 2P and S = 180 + 3P? (a) P = $8 and Q = 156 CDs (b) P = $12 and Q = 216 CDs (c) P = $24 and Q = 136 CDs (d) P = $15 and Q = 245 CDs
Which of the following represents the market clearing price and market clearing quantity for CDs in a market where the demand and supply equations are D = 240 - 2P and S = 180 + 3P? (a) P = $8 and Q = 156 CDs (b) P = $12 and Q = 216 CDs (c) P = $24 and Q = 136 CDs (d) P = $15 and Q = 245 CDs
Subject:MarketingPrice:2.88 Bought3
Which of the following represents the market clearing price and market clearing quantity for CDs in a market where the demand and supply equations are D = 240 - 2P and S = 180 + 3P?
(a) P = $8 and Q = 156 CDs
(b) P = $12 and Q = 216 CDs
(c) P = $24 and Q = 136 CDs
(d) P = $15 and Q = 245 CDs
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Ans: (b) P = $12 and Q = 216 CDs
At equilibrium,
D = S
240 - 2P = 180 + 3P
5P = 60
P = 60 / 5 = $12
Q = 240 - 2P = 240 - 2(12) = 216 CDs
Thus, the market clearing price is $12 and market clearing quantity is 216 CDs.
