Question

If the demand function is Q=130−20p, and the supply function is Q=30+20p, what are the equilibrium price and quantity? The equilibrium price is $ per unit. (Enter your response rounded to two decimal places.) The equilibrium quantity is units. (Enter your response rounded to one decimal place

Answer 1

Q= 166.67

Step-by-step explanation:

Q =130-120p =Q=30+20p

step1= Q-130=120p

p=Q-130/120

Then, substitute P place by (Q-130/120)

Q=30+20p

Then

Q=30+20(Q-130/120)

Q=30+(20Q/120)-(130/60)

Q=30-(130/60)+0.167Q

Q=30-(2.167)+0.167Q

Q-0.167Q=27.833

Q=27.833/0.167

Q=166.67