wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The individual demand and supply functions of a product are given as: Dx = 10 – 2Px, Sx = 20 + 2Px, where Px stands for price and Dx and Sx respectively stands tot quantity demanded and quantity supplied. If there are 4,000 consumers and 1,000 firms in the market, then quantity demanded and supplied at the equilibrium price of 2.
(a) 20,000 (b) 22,000 (c) 21,000 (d) 24,000

Open in App
Solution

Dear student,

The quantity demanded and quantity supplied can be calculated by substituting the given values in the respective equations.

DX = 10 - 2 (2) = 6
As there are 4000 consumers the total demand is (4000 * 6) = 24,000

Similarly,
SX = 20 + 2 (2) = 24
As there are 1000 firms in the market so the total supply is (1000 * 24) = 24,000

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Let’s Solve the Puzzle
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon