Suppose that the total market demand for a product consists of the demands of
individual 1 and individual 2. The demand equations of the two individuals are given by the following equations:
QD,1 =20-2P and QD,2 =40-8P
Suppose that the total market supply is given by the equation:
QS =-10+2PWhat are the market equilibrium price and quantity?
Answer: Q* = 5, P* = 7.5