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Use the information below to answer this question. Given that Q d = 20 -...

Economics
JAMB 2008

Use the information below to answer this question.
Given that Q d = 20 - 4P and Q = 6P + 12

Determine the equilibrium quantity

  • A. 14.2
  • B. 16.8
  • C. 20.8
  • D. 30.2
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Correct Answer: Option B
Explanation

Q d = 20 - 4P and Q = 6P + 12
Qd = Qs

20 - 4p = 6p + 12
20 - 12 = 8
6p + 4p = 10p
p = 8/10 = 0.8
Substitute '0.8' in Qd equation. Hence we will have

Qd = 20 - 4 (0.8)
Qd = 20 - 3.2 = 16.8


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