The demand curve is described by the equation: Q = 641-2P. The supply curve is described by the equation: Q = 341 + 4P

| April 25, 2021 | education

The demand curve is described by the equation: Q = 641-2P. The supply curve is described by the equation: Q = 341 + 4P Find the equilibrium volume and equilibrium price. If the market price is CU 10, what is the sales volume?

Let us find the equilibrium price and equilibrium sales volume by equating supply and demand:

641 – 2P = 341 + 4P;

6P = 300;

P = 50 den. units

Find the equilibrium volume by substituting the price into one of the supply or demand equations:

Q = 641 – 2 * 50 = 541 units.

If the market price settles at 10 den. units, then we find the volume of supply and demand:

Qd = 641 – 2 * 10 = 621 units.

Qs = 341 + 4 * 10 = 381 units.

Sellers offer fewer items for sale than consumers want to purchase. The sales volume at this price will be equal to the supply volume, that is, 381 units.

Answer: PE = 50 den. units, QE = 541 units. With P = 10, sales volume = 381 units.



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