Find the market price for the given pair of supply and demand equations: s= 29P+470 D=...

Find the market price for the given pair of supply and demand equations:

s= 29P+470

D= 1150-11p

Expert Solution

Ans) Equilibrium is where Qd = Qs

29P + 470 = 1150 - 11P

29P + 11P = 1150 - 470

40P = 680

P = $17

Also, we can find market quantity by plugging the value of P in either demand or supply equation.

Qs = 29P + 470 = 29(17) + 470 = 963 units

Or

Qd = 1150 - 11P = 1150 - 11(17) = 963 units.

Rahul Sunny answered 2 years ago

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