1.

Suppose the demand and supply curves of a commodity are given as: Yd=200−p Ys=120+p (i) Find the equilibrium price and equilibrium quantity. (ii) Also show that at a price of Rs. 30, there is excess demand and at a price of Rs. 45, there is excess supply.

Answer»

Suppose the demand and supply curves of a commodity are given as:
Yd=200p
Ys=120+p
(i) Find the equilibrium price and equilibrium quantity.
(ii) Also show that at a price of Rs. 30, there is excess demand and at a price of Rs. 45, there is excess supply.



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