Assume that demand for a commodity is represented

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Reference no: EM13803300

Assume that demand for a commodity is represented by the equation P = 10 – 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd ,

Found equilibrium price @ 10.

1. Now determine equilibrium quantity.

Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.

Reference no: EM13803300

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