Question #87622

Question 6. Consider a perfectly competitive market. The equilibrium price is 12. The equilib- rium quantity is 440. The supply curve is Q (P ) = 200 + 20P . Which of the following could be the demand curve in this market?

a) Noneoftheotheranswersiscorrect.

b) Q(P)=500−5P

c) Q(P)=300−10P

d) Q(P)=1000−10P

a) Noneoftheotheranswersiscorrect.

b) Q(P)=500−5P

c) Q(P)=300−10P

d) Q(P)=1000−10P

Expert's answer

Let's calculate the quantity corresponding to each of the equations b), c), d) at the equilibrium price of 12. So, we get:

b) Q(P)=500−5P=500-5*12=440,

c) Q(P)=300−10P=300-10*12=180,

d) Q(P)=1000−10P=1000-10*12=880.

The equilibrium quantity is 440 that corresponds to the option b).

**Answer: **The option b) could be the demand curve equation in this market.

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