Assume the following demand and supply equations: Qd-900-20P, and Qs=150+10P. a) Calculate the slopes of the two curves b) Calculate the equilibrium price and quantity c) If the price was $30, how much would the quantity demanded be? d) If the price was $30, how much would the quantity supplied be? e) At a price of $30, is there a shortage or a surplus? How can you tell?
Assume the following demand and supply equations: Qd-900-20P, and Qs=150+10P. a) Calculate the slopes of the two curves b) Calculate the equilibrium price and quantity c) If the price was $30, how much would the quantity demanded be? d) If the price was $30, how much would the quantity supplied be? e) At a price of $30, is there a shortage or a surplus? How can you tell?
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 20P
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Transcribed Image Text:Assume the following demand and supply equations: Qd=900-20P, and
Qs=150+10P.
a) Calculate the slopes of the two curves
b) Calculate the equilibrium price and quantity
c) If the price was $30, how much would the quantity demanded be?
d) If the price was $30, how much would the quantity supplied be?
e) At a price of $30, is there a shortage or a surplus? How can you tell?
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Step 1: Define the dynamics of the market
VIEWStep 2: Calculate the slopes of the both demand and supply functions
VIEWStep 3: Calculate the equilibrium price and quantity
VIEWStep 4: Calculate the demand and supply at a price of $30
VIEWStep 5: Examine if there is a shortage or a surplus at a price of $30
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