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.

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

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

Suggest Corrections

Similar questions

Consider the following demand and supply functions for a good.

Quantity demanded = 160 - 2p

Quantity supplied = - 40 + 2p

(i) Calculate the equilibrium price and quantity.

(ii) Find out a price at which there is excess demand.

(iii) Find out a price at which there is excess supply.

Q. If the demand function of a product x is as dx= 15- 3Px, where Px stands for price. The quantity demanded corresponding to price of Rs. 3 is _______.

Q. Find the elasticity of demand at price

p = 20

given the demand function

q = 120 - 4 P

where p stands for price and q for quantity demanded.

Q. The demand function of a product x is as

d x = 24 - 3 P x

, where Px stand for price. The quantity demanded corresponding to price of Rs.

4

will be ______.

Suppose the demand and supply curves of a commodity are given as:
$Y^{d} = 200 - p$
$Y^{s} = 120 + p$
(i) Find the equilibrium price and equilibrium quantity.
(ii) Also show that at a price of Rs. 30, there is excess demand and at a price of Rs. 45, there is excess supply.

Join BYJU'S Learning Program