Find the equilibrium price and quantity for the market where in. Quantity of supply = -20 +3p ,
Quantity of demand = 220-5p?

Question

Find the equilibrium price and quantity for the market where in. Quantity of supply = -20 +3p , Quantity of demand = 220-5p?

Answer

E=S=D

Qs=Qd

250 -- 5p = -- 20 + 3p

240 = 8p

p = 30

Q= 220 -- 5 (30)
= 70

so, it is equillibrium when p= 30 and Q= 70

Answer

Equilibrium Price and Quantity in a Market

The equilibrium price and quantity in a market are determined by the intersection of the demand and supply curves. At this point, the quantity demanded by buyers is equal to the quantity supplied by sellers, resulting in a market equilibrium.

Determining the Demand Curve

In this scenario, the demand curve is given as:

Quantity of demand = 220-5p

Where:

p is the price of the product

220 is the quantity demanded when the price is zero

Each unit increase in price leads to a decrease of 5 units in quantity demanded

Determining the Supply Curve

The supply curve is given as:

Quantity of supply = -20 + 3p

Where:

p is the price of the product

-20 is the quantity supplied when the price is zero

Each unit increase in price leads to an increase of 3 units in quantity supplied

Finding the Equilibrium Price and Quantity

To find the equilibrium price and quantity, we need to find the price at which the quantity demanded equals the quantity supplied.

Setting the quantity demanded equal to the quantity supplied:

220-5p = -20 + 3p

Solving for p:

8p = 240

p = 30

Therefore, the equilibrium price in the market is $30.

To find the equilibrium quantity, we substitute the equilibrium price into either the demand or supply equation:

Quantity of demand = 220-5(30) = 70

Quantity of supply = -20 + 3(30) = 70

Therefore, the equilibrium quantity in the market is 70 units.

Conclusion

In conclusion, the equilibrium price and quantity in the market are determined by the intersection of the demand and supply curves. In this scenario, the equilibrium price is $30 and the equilibrium quantity is 70 units.

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