How do you calculate QD and Qs?
Suppose that demand is given by the equation QD=500 – 50P, where QD is quantity demanded, and P is the price of the good. Supply is described by the equation QS= 50 + 25P where QS is quantity supplied. What is the equilibrium price and quantity? divide both sides by 75 to get P =…
Suppose that demand is given by the equation QD=500 – 50P, where QD is quantity demanded, and P is the price of the good. Supply is described by the equation QS= 50 + 25P where QS is quantity supplied. What is the equilibrium price and quantity? divide both sides by 75 to get P = 6.Click to see full answer. Also asked, what is the Qd and Qs at the equilibrium price?In this market, the equilibrium price is $6 per unit, and equilibrium quantity is 20 units. At this price level, market is in equilibrium. Quantity supplied is equal to quantity demanded ( Qs = Qd). If the market price (P) is higher than $6 (where Qd = Qs), for example, P=8, Qs=30, and Qd=10. what happens if price is below equilibrium? Surplus and shortage: If the market price is above the equilibrium price, quantity supplied is greater than quantity demanded, creating a surplus. Therefore, surplus drives price down. If the market price is below the equilibrium price, quantity supplied is less than quantity demanded, creating a shortage. People also ask, what is QD in economics? Definition: Quantity Demanded. QD = the amount of a good or service people reasonable desire to purchase (can afford) during a particular time at a particular price.What happens when demand exceeds supply?A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. A surplus occurs when the price is too high, and demand decreases, even though the supply is available.
