Engineering Board Exam Reviewer · Basic Economic Concepts · medium

The supply of a product is Qs=200+5p and the demand is Qd=1,000-15p, where p is the price in pesos. Find the equilibrium price.

  1. P30
  2. P50
  3. P20
  4. P40

Answer

D. P40

Solution

At equilibrium Qs=Qd: 200+5p=1,000-15p 20p=800 p=P40 (and Q=400 units).

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