The demand and supply equations for a commodity are given respectively as D = 20 - 1/2P; S = 8 + 1/4P. Recalling that at equilibrium, D = S, the equilibrium (P) and quantity (Q) can be obtained as
a
P = 12, Q = 16
b
P = 15, Q = 10
c
P = 12, Q = 14
d
P = 16, Q = 12
Explanation
Correct Option
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Vhyckthor
5 years ago
D = 20 - 1/2p
S = 8 + 1/4p ....... D =S
20 - 1/2p = 8 + 1/4p
-1/4p - 1/2p = 8 - 20
-3/4p = -12
P = 12/1 X 4/3 = 48/3
P = 16.
D = 20 - 1/2(16)
= 20 - 1/32
= 12.
