Use the information below to answer this question.

Given that Q d = 20 - 4P and Q = 6P + 12

Determine the equilibrium quantity

  • A 14.2
  • B 16.8
  • C 20.8
  • D 30.2
jamb 2008economics

The correct answer is B. 16.8

Q d = 20 - 4P and Q = 6P + 12

Qd = Qs

20 - 4p = 6p + 12

20 - 12 = 8

6p + 4p = 10p

p = 8/10 = 0.8

Substitute '0.8' in Qd equation. Hence we will have

Qd = 20 - 4 (0.8)

Qd = 20 - 3.2 = 16.8

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