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16 February, 02:25

Supply equation: Q = - 4 + P and a demand equation of Q = 16 - P. What is the equilibrium price?

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  1. 16 February, 02:48
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    Q = - 4 + P

    Q = 16 - P

    Then:

    -4 + P = 16 - P

    -4-16=-P-P

    -20=-2P

    -20/-2=P

    10=P

    The equilibrium price is 10 if you replace 10 in both equation you would obtain a demand and supply equal to 6.
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