Assume that demand for a commodity is represented by the equation P=80−2Qd.P=80−2Qd. Supply is represented by the equation P=−20+2Qs,P=−20+2Qs, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number. Using the equilibrium condition Qs = Qd, solve the equations to determine equilibrium price and equilibrium quantity.
ADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation
P=80−2Qd.P=80−2Qd.
Supply is represented by the equation
P=−20+2Qs,P=−20+2Qs,
where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price.
Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number.
Using the equilibrium condition Qs = Qd, solve the equations to determine
Market equilibrium is the state where the quantity of a good or service demanded by consumers equals the quantity supplied by producers at a specific price. In other words, it is a state where there is no excess supply or excess demand.
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