Given that Qd = 10 - 2p while Qs = 5 + 3P, if P = N 1 determine the equilibrium quantity

  • A 7
  • B 6
  • C 5
  • D 8
jamb 2017economics

The correct answer is D. 8

To get equilibrium price and quantity:

i) Get function solved for Qs and Qd (quantity supplied) and Qd (quantity demanded)

ii) Set Qs equal to Qd

iii) Solve for P (equilibrium price)

iv) Plug your P back into your Qs and Qd function to get the quantity.

when, Qd = 10 − 2p and Qs = 5 + 3p

if Qd = Qs then,

10 − 2p = 5 + 3p

solving for p: 10 − 5 = 3p + 2p

5 = 5p

p = 1 (given in the equation)

Equilibrium Quantity will be gotten by plugging P into Qd and Qs respectively;

If P = 1

Qd = 10 − 2p Qs = 5 + 2p

= 10 − 2(1) = 5 + 3(1)

= 10 − 2 = 5 + 3

= 8

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