The demand curve can be graphed using the expression Q = 100 - P and the supply curve can be graphed using the expression Q = 40 + 2P. Find the equilibrium price and quantity in this market.

The equilibrium price and quantity within a market for a good can be found at the intersection of the supply and demand curves. Therefore, we need to use a mathematical method to find the P and Q by equating the two expressions. 100 - P = 40 + 2P 100 - 40 = 2P + P 60 = 3P P = 20 therefore Q = 100 - 20 = 80 therefore the equilibrium price for this good is 20 at 80 units sold.

Answered by Tamara K. Economics tutor

1854 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is inflation and how can we measure it?


What are tariffs and why are they used?


Explain why a rise in investment should help to increase the rate of growth of the UK economy


Explain how a reduction in interest rates affect AD.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences