The lockdown around the world has caused the rapid growth in the electronic market as people have shifted from conventional methods to the new methods for imparting knowledge and staying connected. If demand and supply function are given as:Qd= 65 – 10P Qs= -35 + 15PFind the equilibrium price and quantity and show it on labeled D/S diagram.How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2?Show on the Demand-Supply diagramin (a), the graphical interpretation of your answer of (b).

1) Equilibrium is given as Qs= Qd -35+15P=65-10P 25P= 100 P=100/25=$4 Q= -35+15(4)=65-10(4)= 25 The…

Answered: The lockdown around the world has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The lockdown around the world has caused the rapid growth in the electronic market as people have shifted from conventional methods to the new methods for imparting knowledge and staying connected. If demand and supply function are given as:

Qd= 65 – 10P Qs= -35 + 15P

Find the equilibrium price and quantity and show it on labeled D/S diagram.
How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2?
Show on the Demand-Supply diagramin (a), the graphical interpretation of your answer of (b).

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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