There are 10,000 identical individuals in the market for commodity X, each with a demand function given by Qdx=12-2Px and 1,000 producers of commodity X each with the function Qsx=20Px.

i. Find the market demand function and the market supply function for commodity X.

ii. Obtain the market demand and market supply schedules and from them the equilibrium price.

iii. Obtain the equilibrium price and equilibrium quantity mathematically.

Market equilibrium

In microeconomics, market equilibrium refers to a situation where market demand for the commodity is equal to the market supply of the commodity. Any change in the market demand or supply will have an impact on the market equilibrium.

Answer rating: 100% (QA)

a The given individual demand function for good x Dx 122Px There are 10000 identical individuals in the market Then the market demand function for 100... View the full answer