Multiple Choice
Which of the following events would result in an increase in supply in a market?
28
views
3. The Market Forces of Supply and Demand
Supply and Demand: Quantitative Analysis
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The supply and demand curves for a product are as follows:
Qd = 10560 − 80P
P = 1 40Qs + 6
What is the equilibrium price and quantity of the product?
A
P* = \$60, Q* = 5760
B
P* = \$70, Q* = 4960
C
P* = \$80, Q* = 4160
D
P* = \$90, Q* = 3360
Verified step by step guidance1
Identify the demand equation: Qd = 10560 - 80P, where Qd is the quantity demanded and P is the price.
Identify the supply equation: Qs = 140P + 6, where Qs is the quantity supplied and P is the price.
Set the quantity demanded equal to the quantity supplied to find the equilibrium: 10560 - 80P = 140P + 6.
Solve the equation for P to find the equilibrium price. Combine like terms and isolate P on one side of the equation.
Substitute the equilibrium price back into either the demand or supply equation to find the equilibrium quantity.
4:38mWatch next
Master Equation of a Demand Curve with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Supply and Demand: Quantitative Analysis practice set
Problem sets built by lead tutorsExpert video explanations