Question: demand for a commodity is represented by the equation P=10-0.2Qd Supply is represented by the equation P=2+0.2Qs where Q d and Q s are quantity

demand for a commodity is represented by the equation

P=10-0.2Qd

Supply is represented by the equation

P=2+0.2Qs

whereQdandQsare quantity demanded and quantity supplied, respectively, andPis price.

a. Using the equilibrium conditionQs=Qd, determine equilibrium price.

b. Now determine equilibrium quantity.

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