Microeconomics: Market Equilibrium · Class 11 · CBSE · Commerce Economics
In a market, the demand and supply functions are Qd = 100 - 2P and Qs = 20 + 2P, where P is price. What are the equilibrium price and quantity?
Practice question from Microeconomics: Market Equilibrium (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-F92DD8
In a market, the demand and supply functions are Qd = 100 - 2P and Qs = 20 + 2P, where P is price. What are the equilibrium price and quantity?
- A.Price = 10 and quantity = 80
- B.Price = 20 and quantity = 60Correct answer
- C.Price = 30 and quantity = 40
- D.Price = 40 and quantity = 20
Solution
At equilibrium, . Thus, , giving . Substituting this price into either equation gives equilibrium quantity .
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