Question

The demand for books is: The supply of books is: 9) Refer to Scenario 2.1. What is the equilibrium price of books? 9) A) 20 B) 15 C)5 D) 10 E) none of the above A-2 10) Refer to Scenario 2.1. What is the equilibrium quantity of books sold? 10) А)75 B) 100 C) 50 D) 25 E) none of the above

Answer 1

Equilibrium Price (Ep) = 20

Equilibrium quantity (Eq) = 100

Step-by-step explanation:

Missing information

Qs = 5P

Qd = 120 - P

The equilibrium is where quantity supplied matches quantity demanded.

Qs= Qd

5P = 120 - P

5p + P = 120

6P = 120

P = 20

Then we solve for quantity:

Notice, we should get the same answer in both equation, else is wrong.

Qs = 5 x P = 5 x 20 = 100

Qd = 120 - P = 120 - 20 = 100

They match so our answer are correct.

Ie get different value, first; we check the math and if keeping getting different values we should redo the calculation for price.