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suppose the demand and supply curves for units of university credits are given by the following...

suppose the demand and supply curves for units of university credits are given by the following equations Qd= 5400-2P Qs= 3P-400 what is the free market equilibrium price and quantity

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Answer #1

Given Data: ,

For, Free market equilibrium price and quantity,

  • Condition - 1:

Now, For equilibrium quantity: Put value of P in equation of Qd and Qs.

So, here free market equilibrium quantity Qd = Qs = Q = 3080 & equilibrium price P = 1160

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