The demand for books is: The supply of books is: 9) Refer to Scenario 2.1. What is the equilibrium price of books? 9) A) 20 B) 15 C) 5 D) 10 E) none of the above A-2 10) Refer to Scenario 2.1. What is the equilibrium quantity of books sold? 10) А) 75 B) 100 C) 50 D) 25 E) none of the above

Question

Skyler Morse

Business

27 March, 12:22

The demand for books is: The supply of books is: 9) Refer to Scenario 2.1. What is the equilibrium price of books? 9) A) 20 B) 15 C) 5 D) 10 E) none of the above A-2 10) Refer to Scenario 2.1. What is the equilibrium quantity of books sold? 10) А) 75 B) 100 C) 50 D) 25 E) none of the above

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Answers (1)

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Leticia · Answer 1

Equilibrium Price (Ep) = 20

Equilibrium quantity (Eq) = 100

Explanation:

Missing information

Qs = 5P

Qd = 120 - P

The equilibrium is where quantity supplied matches quantity demanded.

Qs = Qd

5P = 120 - P

5p + P = 120

6P = 120

P = 20

Then we solve for quantity:

Notice, we should get the same answer in both equation, else is wrong.

Qs = 5 x P = 5 x 20 = 100

Qd = 120 - P = 120 - 20 = 100

They match so our answer are correct.

Ie get different value, first; we check the math and if keeping getting different values we should redo the calculation for price.