Given the equations for demand and supply: Qd = 48 − 4P and Qs = 4P − 16, respectively, the market is in equilibrium when the quantity bought and sold is:
A) 8.
B) 16.
C) 24.
D) 32.

Question

Quizplus · Accepted Answer

To find the equilibrium quantity, set Qd equal to Qs: 48 - 4P = 4P - 16. Solving for P gives P = 8. Substitute P = 8 back into either equation to find the equilibrium quantity: Qd = 48 - 4(8) = 16 or Qs = 4(8) - 16 = 16. Thus, the equilibrium quantity is 16.

Given the Equations for Demand and Supply: Qd = 48