a particular market, demand and supply curves are defined by the following equations QD = 300 – 20P, QS = -540 + 40P, where P is the price per unit in pounds and QD and QS are the quantity demanded and quantity supplied, respectively. A) What is the equilibrium price and quantity? B) If a maximum price is fixed at £12, what quantity will b

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Chapter3: Supply And Demand: Theory
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  1. In a particular market, demand and supply curves are defined by the following equations


QD = 300 – 20P,
QS = -540 + 40P,


where P is the price per unit in pounds and QD and QS are the quantity demanded and quantity supplied, respectively.

 

A) What is the equilibrium price and quantity?

B) If a maximum price is fixed at £12, what quantity will be traded?

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