--%>
Assignment Help - homework help

Describe equilibrium price and quantity

Assume the market for widgets can be described by the given equations:
                     Demand: P = 10 - Q               Supply: P = Q - 4
Here P refers to the price in dollars per unit and Q refers to the quantity in thousands of units.
Describe equilibrium price and quantity?
To determine the equilibrium price and quantity, equate supply and demand and solve out for QEQ:
                                                         10 - Q = Q - 4, or QEQ = 7.

Substitute QEQ in either the demand equation or the supply equation to get PEQ.
                                                           PEQ = 10 - 7 = 3,
                                                                            or
                                                           PEQ = 7 - 4 = 3.

   Related Questions in Finance Basics

  • Q : Describe depreciation expense Describe

    Describe depreciation expense as it seems on the income statement.  Accounting depreciation is the allocation of asset's primary cost over time. Depreciation cost on an income statement is the amount of the asset=s initial cost allocated to

    		•
  • Q : Question related to MPC Normal 0 false

    Normal 0 false false

  • Q : Advantages-disadvantages of internal

    Describe advantages and disadvantages of the internal rate of return method? The internal rate of return method is discounted cash flow method and number expressed like a percentage. Typically these are seen as advantages. The main disadvantag

    		•
  • Q : Compare diversifiable and non

    Compare diversifiable and non diversifiable risk. Which do you think is more significant to financial managers within a business firms?Diversifiable risk can be dealt along with by, of course, diversifying. Generally non diversifiable risk is co

    		•
  • Q : Define Legislative Counsel Digest

    Legislative Counsel Digest: The summary of what a legislative measure does contrasting the existing law and the proposed change. This summary emerges on the first page of the bill.

    		•
  • Q : Shares Assignment Mina Patel has seen

    Assignment Mina Patel has seen attractive advertisements for Dixons Retail plc and its UK-based brands. She is also aware of the intense competition between retailers of electronic and electrical goods, at a time of global economic uncertainty. Mina has recently inherited several thousand pound

    		•
  • Q : Effect of raising funds on rapidly

    Companies along with rapidly growing levels of sales do not require worrying about raising funds from outside the firm. Do you agree or disagree along with this statement? Describe. Disagree. Quickly growing firms require more assets to accom

    		•
  • Q : Debit or credit Hi this is Shailender

    Hi this is Shailender Ojha i want to know when we receive the sales where we put the sales. in debit or credit column . could you please let me know.

    		•
  • Q : State Schedule 11 Schedule 11 : It is

    Schedule 11: It is the outdated word for “Supplementary Schedule of Operating Expenses and Equipment.”

    		•
  • Q : Three examples of mutually exclusive

    Provide three examples of mutually exclusive projects. Mutually exclusive projects are projects which compete against each other for our selection. If firm were considering the purchase of new computer, requiring only one computer, then the pro

    		•