To find the equilibrium solution for the given model, we need to set the quantity demanded (Qd) equal to the quantity supplied (Qs) and solve for the price (P) that corresponds to that equilibrium quantity.
Given:
Qd = 95 - 3P
Qs = -10 + 6P
Setting Qd equal to Qs:
95 - 3P = -10 + 6P
Let's solve this equation to find the equilibrium price (P):
95 + 10 = 6P + 3P
105 = 9P
P = 105/9
P ≈ 11.67
Now, we can substitute the equilibrium price back into either the quantity demanded or the quantity supplied equation to find the equilibrium quantity (Q):
Qd = 95 - 3P
Qd = 95 - 3(11.67)
Qd ≈ 95 - 35
Qd ≈ 60
Therefore, the equilibrium solution for the model is approximate:
Price (P) ≈ 11.67
Quantity (Q) ≈ 60