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.

TK
Answered by Tamara K. Economics tutor

2498 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Relate the competitive market and the monopoly setting


Should the fizzy drinks market be regulated or left to the free workings of the market?


Why does lowering interest rates boost aggregate demand?


What impact would a cut in the base rate by the Bank of England have on Aggregate Demand?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning