The market for audio cassettes has inverse supply and demand curves given by P=2Qs and P= 42 -Qd. Calculate the equilibrium price.

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Solution

p= 2Qs or $Q s = \frac{p}{2}$
p= 42-Qd or Qd= 42-p
At equilibrium price Qd=Qs
Hence $42 - p = \frac{p}{2}$
$∴ 84 - 2 p = p$
$\Rightarrow 3 p = 84 \Rightarrow p = 28$
Hence equilibrium price = Rs. 28

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The market for audio cassettes has inverse supply and demand curves given by P=2Qs and P= 42 -Qd. Calculate the equilibrium price.

p= 2Qs or Qs=p2 p= 42-Qd or Qd= 42-p At equilibrium price Qd=Qs Hence 42−p=p2 ∴84−2p=p ⇒3p=84⇒p=28 Hence equilibrium price = Rs. 28

p= 2Qs or $Q s = \frac{p}{2}$
p= 42-Qd or Qd= 42-p
At equilibrium price Qd=Qs
Hence $42 - p = \frac{p}{2}$
$∴ 84 - 2 p = p$
$\Rightarrow 3 p = 84 \Rightarrow p = 28$
Hence equilibrium price = Rs. 28