Calculate equilibrium price and quantity based on the following inform

1.	Calculate equilibrium price and quantity based on the following information. qd = 400 – P (1) qs = 240 + 3 (p – 4) (2)
Answer» At equilibrium, q^d = q^s Putting the values, 400 – p = 240 + 3(p – 4) 400 – p = 240 + 3p – 12 400 - 240 + 12 = 3p + p 172 = 4P P =\(\frac{172}{4}\) p = 43 Putting p = 43 in the first equation, we get, q^d =400 – 43 = 357 Therefore, equilibrium price = 43 and equilibrium quantity is = 357 units

Calculate equilibrium price and quantity based on the following information. qd = 400 – P (1) qs = 240 + 3 (p – 4) (2)

Answer»

At equilibrium,

q^d = q^s Putting the values,

400 – p = 240 + 3(p – 4)

400 – p = 240 + 3p – 12

400 - 240 + 12 = 3p + p

172 = 4P

P =\(\frac{172}{4}\)

p = 43

Putting p = 43 in the first equation, we get,

q^d =400 – 43 = 357 Therefore, equilibrium price = 43 and equilibrium quantity is = 357 units