1. Suppose that demand is given by the equation QD=500 – 50P, where QD is quantity demanded, and P is the price of the good. Supply is described by the equation Qs= 50 + 25P where QS is quantity supplied. What is the equilibrium price and quantity?

1. Suppose that demand is given by the equation QD=500 – 50P, where QD is quantity demanded, and P is the price of the good. Supply is described by the equation Qs= 50 + 25P where QS is quantity supplied. What is the equilibrium price and quantity?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 11RQ: As a general rule, is it safe to assume that a change in the price of a good will always have its...

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Question

QII. PROBLEM SOLVING: Show the complete solution by showing your
cash flow diagram before answering the problem.
1. Suppose that demand is given by the equation QD=500 – 50P, where QD is
quantity demanded, and P is the price of the good. Supply is described by the
equation Qs= 50 + 25P where QS is quantity supplied. What is the equilibrium price
and quantity?

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