Answer to Question #55275 in Finance for Saurabh Mishra
A) Determine the market equilibrium price if the demand and supply function is given as
B) Determine the equilibrium quantity if price is the same as above
S = 14p – 4
Equilibrium price is in the point, where Qd = Qs, so:
12p + 8 = 14p - 4
p = $6
b) The equilibrium quantity is in the point, where Qd = Qs, so if p = 6, then:
D = 4p – 4q
S = 8q – 4p
24 - 4q = 8q - 24
q = 4 units.
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