Chapter5: Supply, Demand, And Price: Applications
Section: Chapter Questions
Problem 4WNG
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I need the part (d) only graph . All other parts are already solved you refer this n plot the graph
Transcribed Image Text:You are given the following supply and demand equations:
Qd- 100 – 2P
Qs= 10 + P
a. What will be the quantity demanded at a price of $40?
b. What will be the quantity supplied at a price of $30?
c. What is the equilibrium price and equilibrium quantity?
d. Draw the appropriate graph.
Transcribed Image Text:a) At the price of $40, the quantity demanded can be computed as follows:
Q=100 - 2P
=100 - 2 x 40
=100 - 80
= 20
Thus, at price of $20, quantity demanded is 20.
b) At the price of $30, the quantity supplied can be computed as follows:
Q. =10 +P
=10 + 30
= 40
Thus, at price of $30, quantity supplied is 40.
c) At equilibrium,
Q=Qs
100 - 2P =10 + P
100 -10 = 2P+ P
90 = 3P
P= 30
Put P = 30 in Qa equation,
Q=100 - 2P
=100 - 2 x 30
= 100 - 60
= 40
Thus, equilibrium price is 30 and quantity is 40.
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