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  • Activity 1 Demand and Supply Equation

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    CARmyAT L
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    1. The demand equation is Qd = 3000 - 3p and the supply equation is Qs = 400 + 2P. Solving the equations simultaneously yields an equilibrium price (Pe) of 200 and an equilibrium quantity (Qe) of 1000. 2. For the market in part B: - The demand equation is Qd = 3000 - 1.5P - The supply equation is Qs = -200 + 2P - At a price of 0, the quantity demanded is 3000 and the quantity supplied is -200.

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    1. The demand equation is Qd = 3000 - 3p and the supply equation is Qs = 400 + 2P. Solving the equations simultaneously yields an equilibrium price (Pe) of 200 and an equilibrium quantity (Qe) of 1000. 2. For the market in part B: - The demand equation is Qd = 3000 - 1.5P - The supply equation is Qs = -200 + 2P - At a price of 0, the quantity demanded is 3000 and the quantity supplied is -200.

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    © All Rights Reserved
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    9 views1 page

    Activity 1 Demand and Supply Equation

    Uploaded by

    CARmyAT L
    1. The demand equation is Qd = 3000 - 3p and the supply equation is Qs = 400 + 2P. Solving the equations simultaneously yields an equilibrium price (Pe) of 200 and an equilibrium quantity (Qe) of 1000. 2. For the market in part B: - The demand equation is Qd = 3000 - 1.5P - The supply equation is Qs = -200 + 2P - At a price of 0, the quantity demanded is 3000 and the quantity supplied is -200.

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    © All Rights Reserved
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    1 whole sheet of yellow pad paper

    A. Given the demand equation and supply equation below, solve for Equilibrium Price (Pe) and
    Equilibrium Quantity (Qe). Show your solution and graph your answer. (30 points)
    1. Demand: Qd = 3000 - 3p
    Supply: Qs = 400 + 2P
    2. Demand: Qd = 100 – 2P
    Supply: Qs = -40 + 2P

    B. Consider a competitive market for which the quantities demanded and supplied at various
    prices are given as follows:

    Price Quantity Demanded Quantity Supplied


    100 3000 -200
    200 2500 100
    300 2000 400
    400 1500 700
    1. What is the demand equation? (show your solution 10 pts.)
    2. What is the supply equation? (show your solution 10pts.)
    3. At zero price level, what is Qd? (5pts)
    4. At zero price level, what is Qs? (5pts)

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