Suppose the market demand curve is given by Qᵈ = 80 - 10P, and the market supply curve is given by Qˢ = 10 + 15P. What is the equilibrium price and quantity?
A)P* = $2.60 and Q* = 54
B)P* = $3.00 and Q* = 55
C)P* = $2.80 and Q* = 52
D)P* = $2.80 and Q* = 54

Question

Quizplus · Accepted Answer

The equilibrium price and quantity are the values found at the intersection of the supply and demand curves. These can be found by setting Qˢ = Qᵈ and solving for P, then returning P into either of the two equations to find Q.

Suppose the Market Demand Curve Is Given by Qᵈ =