The demand and supply functions of commodity x are given as follows: Qd = 20- 2p, Qs = 6p - 12 where p = price, Qd = quantity demanded and Qs = quantity supplied. Determine the equilibrium price

  • A N4
  • B N8
  • C N2
  • D N10
jamb 2015economics

The correct answer is A. N4

Qd = 20 - 2p

Qs = 6p - 12

Therefore, equilibrium price is Qd = Qs

20 - 2p = 6p-12

20 + 12 = 6p+2p

32 = 8p

Equilibrium price = 32/8= 4

Equilibrium price = N4

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