GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Given that Qd =30-3p, Qs =9p-18, determine the equilibrium quantity.
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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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Explanation:
Detailed explanation-1: -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-2: -Therefore, the equilibrium price is 14 .
Detailed explanation-3: -Equilibrium quantity is when supply equals demand for a product. The supply and demand curves have opposite trajectories and eventually intersect, creating economic equilibrium and equilibrium quantity. Hypothetically, this is the most efficient state the market can reach and the state to which it naturally gravitates.
There is 1 question to complete.