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

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Homework Help Overview

The discussion revolves around finding the equilibrium price and quantity using a set of linear equations representing supply and demand. The equations provided are P = -50Qd + 80 and P = 2Qs + 10, where P represents price, Qd is quantity demanded, and Qs is quantity supplied.

Discussion Character

  • Exploratory, Assumption checking

Approaches and Questions Raised

  • The original poster attempts to solve for equilibrium by setting quantity demanded equal to quantity supplied and manipulating the equations. Some participants express uncertainty about the correctness of the equations provided, particularly questioning the coefficients in the demand equation.

Discussion Status

The discussion is ongoing, with participants exploring the validity of the equations and expressing concerns about potential errors in the original poster's setup. There is no explicit consensus on the correctness of the equations, and multiple interpretations are being considered.

Contextual Notes

Participants are questioning whether the equations are accurately transcribed from the source material, particularly regarding the coefficients in the demand equation. This uncertainty may affect the approach to finding the equilibrium.

vitaminZ
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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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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.
 
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.
 
vitaminZ said:

Homework Statement


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

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