Suppose the demand and supply equations are given by:
Qd= 110-10p
and Qs= -100+20p
Find the equilibrium price and quantity.

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Solution

At equilibrium price, Qd=Qs
Hence, 110 - 10p=-100+20p
$\Rightarrow 30 p = 210$
$\Rightarrow p = 7$
Hence equilibrium price = Rs. 7
Equilibrium quantity = 110-10p
$= 110 - 10 \times 7$
=40 (Demand side)

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