BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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20
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25
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27
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18
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18
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Detailed explanation-1: -To find the equilibrium price a mathematical formula can be used. The equilibrium price formula is based on demand and supply quantities; you will set quantity demanded (Qd) equal to quantity supplied (Qs) and solve for the price (P). This is an example of the equation: Qd = 100-5P = Qs =-125 + 20P.
Detailed explanation-2: -How to calculate equilibrium quantity? It can be calculated by solving the demand and supply function (Qa – bP = x + yP). Solving the equation when the supply equals the demand gives an equilibrium price.
Detailed explanation-3: -Equilibrium quantity is when there is no shortage or surplus of a product in the market. Supply and demand intersect, meaning the amount of an item that consumers want to buy is equal to the amount being supplied by its producers.