Question: Assume that demand for a commodity is represented by the equation P = 10 .2Qd and supply by the equation P = 2 +

Assume that demand for a commodity is represented by the equation P = 10 – .2Qd and supply by the equation P = 2 + .2Qs, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Using the equilibrium condition Qs = Qd, solve the equations to determine equilibrium price. Now determine equilibrium quantity. Graph the two equations to substantiate your answers.

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Demand is P 10 2 Q d Therefore 5 P 50 Q d 50 5 P Supply is P 2 2 Q s Therefore ... View full answer

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