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Suppose the value of demand and supply curve of a commodity X is given by the following two equation simultaneously:

            Qd=200-10p            Qs=50+15p

a)       Find the equilibrium price and equilibrium quantity of commodity X

b)      Suppose that the price of a factor inputs used in producing the commodity has changed ,resulting in the new supply curve given by the equation

                     Qs=100+15p

       Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity

Asked by athul32130 21st February 2020, 12:18 PM
Answered by Expert
Answer:
Equlibrium quantity and Equilibrium price is determined where Quantity Demanded = Quantity Supplied. 
It means,
Qd = 200-10p = 50+15p
25p= 150
P= 6
 
 Qd = 200-10p 
      = 200-10(6)
      =200-60 = 140 units
 
Qs = 50+15p
     = 50 + 15(6)
     = 50 +90 = 140 units
 
Therefore equilibrium price is Rs 6
Equilibrium quanity is 140 units
 
Answered by Expert 23rd February 2020, 12:46 PM
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