Answer to Question #97403 in Economics of Enterprise for Suleiman rabe

Question

He demanded and supply equetions for commodity Y are represented by
D=20-1/6p
S=18-1/8p
Required given that equlibrum price and quantity for commodity Y in a price market.

Answer 1

Solution:

D=S

$$20- \frac{1}{6} p=18- \frac{1}{8} p$$

$$20-18= \frac{1}{6} p - \frac{1}{8} p$$

$$\frac{1}{24} p=2$$

P=48.

$$Q=20- \frac{1}{6} \times48$$

$$Q=12$$

Answer: price 48 and quantity 12.