Perfect example - Q = 1400 + 700p Q = 1600-300p...

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Calculate equilibrium price and quantity in the this market. Qd=1600 - 300P and Qs=1400+700p. .? Qd= quantity demanded, Qs= quantity supplied and P is the price. this problem had to deal with demand and supply. . Equilibrium price and quantity are where the two curves intersect. To find this answer, set Qs and Qd equal to each other and solve for Q and P. In this case you can solve by substitution
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Unformatted text preview: Q = 1400 + 700p Q = 1600-300p 1400+700p=1600-300p 1000p=200 p = 1/5 Then plug p back into one of the original equations. Q = 1400+700p Q = 1400+700(.2) Q = 1400+140 Qs = 1540 To make sure you are correct, go back and plug the answers you got back into the other equation and the statement should hold. Qd=1600-300p Qd=1600-300(0.2) Qd=1600-60 Qd=1540...
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