--%>
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 : What is Capital Outlay Capital Outlay

    Capital Outlay (CO): A character of expenses of funds to obtain land, plan and build new buildings, expand or transform existing buildings, and/or purchase tools associated to such construction.

    		•
  • Q : Explain financial markets Explain

    Explain financial markets? Why do they exist?In financial markets, financial securities are bought and sold. They exist chiefly to bring deficit economic units (those needing money) and surplus economic units (those have extra money) together.

    		•
  • Q : Which insurance company takes on the

    Which kind of insurance company usually takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks sheltered against by property and casualty companies are much less predictable than are the risk

    		•
  • Q : Laffer Curveand its association to

    Normal 0 false false

  • Q : Finance associated to the fields of

    How is finance associated to the fields of economics and accounting?

    		•
  • Q : Describe security Normal 0 false false

    Normal 0 false false

    		•
  • Q : Demand for small automobiles Normal 0

    Normal 0 false false

  • Q : How does preemptive right secure

    How does a preemptive right secure the interests of present stockholders? A preemptive right secure the interests of existing stockholders through giving them the chance to preempt other investors into the purchase of new shares. If these right

    		•
  • Q : Define Subventions Subventions :

    Subventions: Typically employed to explain amounts of money expended as local assistance based on the formula, in contrast to grants which are provided selectively and frequently on a competitive basis. For the aim of Article XIII B, state subventions

    		•
  • Q : Underwriting a new security issue for

    What does an investment banker do while underwriting a new security issue for any corporation? While underwriting a new security issue an investment banker purchase it and after that resells it to investors.

    		•