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

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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
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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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