The demand and supply functions for a commodity are given by and , where p is price, is quantity demanded and is quantity supplied. Find the equilibrium quantity and price.
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1 mark, −0.33MicroeconomicsPerfect competitionMarket equilibrium and comparative staticsEasyabout 1 min
UoH 2021 Question 75: Perfect competition
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The demand and supply functions for a commodity are given by p = 120 - 5q_d and p = 24 + qₛ/3, where p is price, q_d is quantity demanded and qₛ is quantity supplied. Find the equilibrium quantity and price. (A) q = 18 and p = 5 (B) q = 5/3 and p = 30 (C) q = 18 and p = 30 (D) q = 120 and p = 24
Also written as: The demand and supply functions for a commodity are given by p = 120 - 5q_d and p = 24 + q_s/3, where p is price, q_d is quantity demanded and q_s is quantity supplied. Find the equilibrium quantity and price.
Perfect competition has come up 115 times in 7 exams since 2006.
What this question tests
This question is on Market equilibrium and comparative statics, part of Perfect competition in Microeconomics.
Finding equilibrium from demand and supply and tracing how it moves when either curve shifts.
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