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

AI Thread Summary
The discussion focuses on finding the equilibrium price and quantity using the equations P = -50Qd + 80 and P = 2Qs + 10. The equilibrium condition requires setting quantity demanded (Qd) equal to quantity supplied (Qs). The attempted solution shows a calculation leading to an equilibrium quantity of 70/52, but there is confusion regarding the accuracy of the equations provided. Participants express concern about the coefficients in the equations, particularly questioning whether the second equation should include 2Qs or 20Qs. Clarification on the equations is necessary to ensure the correct equilibrium is determined.
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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