Question

Suppose that the demand equation for widgets is Qd=10,000−25P . What is the relationship between quantity supplied and quantity demanded at P=$300?

Answer 1

Solution-

Put P = $300 in eqn Qd

Qd = 10000 - 25P

= 10000 - 25(300)

= 10000 - 7500

= 2500 units.

hence quantity demanded is 2500 units.

Price $300 is the equilibrium price it means that at price $300 quantity demanded and quantity supplied units are equal or same. At point in which both curves are intersect each other that point is equilibrium point. However the relation between quantity demanded and supplied at P = $300 is they both are equilibrium and there is neither surplus and nor shortage in the market because Qd = Qs.