Solve the following equations for equilibrium price and quantity. Also show the equilibrium price and quantity by using diagrams for the given demand and supply equations (assume different values for price and calculate the quantity demand and supply).

Q^D = 20 - 2P        and

Q^S = -10 + 2P

1. What is the equilibrium price and quantity?
2. Calculate the Price Elasticity of Demand and Supply over a range (use the mid-point formula).

Answer rating: 100% (QA)

Finding Equilibrium Price and Quantity Step 1 Set Demand equal to Supply QD QS 20 2P 10 2P 4P 30 P 75 Step 2 Calculate Equilibrium Quantity Plug P bac... View the full answer