Suppose the market demand and supply curves are represented by the following equations:

Qd = 100 – 0.25P

Qs = 40 + 0.25P

PART A I already did:

a.   Determine the equilibrium price and quantity. (Show your calculations) [2 marks]
Price can be calculated
QD=QS
100- 0.25P = 40+ 0.25P
Rewritten as: 60 = 0.5
Price= 120

Quantity can be calculated:
QD = 100 – 0.25 (120) = 70

B) illustrate these curves on a graph, labelling these curves, intercepts and equilibrum price and quantity

How would I do this?

Answer rating: 100% (QA)

To illustrate the market demand and supply curves on a graph follow these steps 1 Determine the inte... View the full answer