Assume that demand for a commodity is represented by the equation P = 20 – 0.4Qd and supply by the equation P = 8 + 0.1Qs, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. a. Calculate the equilibrium of price and equilibrium of quantity in the market.

Assume that demand for a commodity is represented by the equation P = 20 – 0.4Qd and supply by the equation P = 8 + 0.1Qs, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. a. Calculate the equilibrium of price and equilibrium of quantity in the market.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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Question

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Assume that demand for a commodity is
represented by the equation P = 20 0.4Qd and
supply by the equation P = 8 + 0.1Qs, where Qd
and Qs are quantity demanded and quantity
supplied, respectively, and P is price.
a. Calculate the equilibrium of price and
equilibrium of quantity in the market.

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