Finding the Equilibrium Price and Quantity for a Simple Linear Equation?

Please check it and let me know.In summary, the conversation discusses finding the equilibrium price and quantity using the equations P = -50Qd + 80 and P = 2Qs + 10, where P represents price, Qd represents quantity demanded, and Qs represents quantity supplied. The attempt at a solution involves setting Qd equal to Qs and solving for Q, but there may be an error in the given equations.
  • #1
vitaminZ
5
0

Homework Statement


P = -50Qd + 80
P = 2Qs + 10

P = Price
Qd = Quantity demanded
Qs = Quantity supplied

Find the equilibrium Price and Quantity.


Homework Equations


Qd = Qs
(equilibrium)

The Attempt at a Solution


Qd = Qs
Q

Since they both equal to P

-50Q + 80 = 2Q + 10 [-2Q]
-52Q + 80 = 10 [-80]
-52Q = -70 [/52Q]
Q = 70/52
Equilibrium Quantity = 70/52

I don't know why this is wrong?
 
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  • #2
I came up with the same answer. I didn't major in economics, though...I just assumed (because it sounds right) that you are right, that equilibrium occurs when the supply = demand.
 
  • #3
Are you sure that you are starting with the right equations? Have you given the problem exactly as it appears in your text or wherever you got it? I'm especially concerned with your Qd equation with the -50 coefficient.
 
  • #4
vitaminZ said:

Homework Statement


P = 2Qs + 10
are you sure that this equation has 2Qs or should it have 20Qs.
 

FAQ: Finding the Equilibrium Price and Quantity for a Simple Linear Equation?

1. What is a simple linear equation?

A simple linear equation is an algebraic equation that can be written in the form of y = mx + b, where x is the independent variable, y is the dependent variable, m is the slope, and b is the y-intercept.

2. What is the difference between a simple linear equation and a complex linear equation?

A simple linear equation only has one independent variable and can be written in a straight line, while a complex linear equation has multiple independent variables and can be written in a curve or nonlinear form.

3. How do you solve a simple linear equation?

To solve a simple linear equation, you need to isolate the variable on one side of the equation by using inverse operations. For example, if the equation is 3x + 5 = 20, you would subtract 5 from both sides and then divide both sides by 3 to get x = 5.

4. What is the importance of a slope in a simple linear equation?

The slope in a simple linear equation represents the rate of change of the dependent variable in relation to the independent variable. It can also be interpreted as the steepness of the line on a graph.

5. Can a simple linear equation have more than one solution?

No, a simple linear equation can only have one solution. This is because it represents a straight line on a graph, and a line can only intersect with a point once.

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