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Given the demand for a product as Qd = 100 − 5P and the supply is given as Qs = -20 + 3P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium price for the product is

Economics

ScanSolve AI Answer

Answer

15\text{15}

Step-by-step solution

4 steps
  1. Set the quantity demanded (Qd) equal to the quantity supplied (Qs) to find the equilibrium price.

    Given the demand equation Qd=100−5PQd = 100 - 5P and the supply equation Qs=−20+3PQs = -20 + 3P.
    At equilibrium:

    Qd=QsQd = Qs 100−5P=−20+3P100 - 5P = -20 + 3P
  2. Solve for P (Price).

    Add 5P5P to both sides of the equation:

    100=−20+3P+5P100 = -20 + 3P + 5P 100=−20+8P100 = -20 + 8P
  3. Isolate PP.

    Add 20 to both sides of the equation:

    100+20=8P100 + 20 = 8P 120=8P120 = 8P
  4. Divide by 8 to find the value of PP.

    P=1208P = \frac{120}{8} P=15P = 15

    The equilibrium price for the product is 15.

    The final answer is 15\text{15}

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