uppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the equilibrium quantity?Group of answer choices20406080

Question

Suppose demand for a good is $Q_D = 100 - P$ and supply is $Q_S = -20 + P$ . What is the equilibrium quantity?

Group of answer choices

20
40
60
80

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Solution

In order to find the equilibrium quantity, we need to set the quantity demanded (QD) equal to the quantity supplied (QS) and solve for the price (P).

So, we have:

100 - P = -20 + P

Solving this equation for P, we get:

2P = 120

P = 60

Now, we substitute P = 60 into either the demand or supply equation to find the equilibrium quantity. Let's use the demand equation:

QD = 100 - P

QD = 100 - 60

QD = 40

So, the equilibrium quantity is 40.

This problem has been solved

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