Suppose that the demand curve for a good is given by Q_D = 80 - P_D,while the supply curve for the good is given by Q_S = 3P_S.The equilibrium quantity is ______ and the equilibrium price is _____. A) 60;20 B) 20;60 C) 20;20 D) 60;60 E) 30;80

Question

Quizplus · Accepted Answer

The equilibrium quantity is found by setting Q_D = Q_S and solving for Q.80 - P_D = 3P_S80 - P_D = 3(P_D - 20)80 - P_D = 3P_D - 604P_D = 140P_D = 35Substituting P_D = 35 into Q_D = 80 - P_D, we get Q_D = 45.Therefore, the equilibrium quantity is 45.The equilibrium price is found by substituting Q = 45 into either Q_D or Q_S.Q_D = 80 - P_D45 = 80 - P_DP_D = 35Therefore, the equilibrium price is 35.

Suppose That the Demand Curve for a Good Is Given