noone has helped me? . Suppose that the total market demand for a product consists of the demands of
individual 1 and individual 2. The demand equations of the two individuals are given by
the following equations:
QD,1 =20-P
QD,2 =60-5P
Suppose that the total market supply is given by the equation:
QS =-18+3P
a. What are the market equilibrium price and quantity?
i tried to figure out the market demand equation first and I got 80-6p. However when I try to solve for the mkt equilbrium price and q, I get decimals and its not working.
1 answer
(a) Market demand is the horizontal summation of individual demand curves, so Market demand (QM) = QD1 + QD2 = (20 - P) + (60 - 5P) QM = 80 - 6P Equating QM and QS, 80 - 6P = - 18 + 3P 9P = 9...(Sorry i couldn't afford the full answer, it was $14.99 a month
0 answers