--%>
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 : Impotence of distinction Normal 0 false

    Normal 0 false false

  • Q : What is in store for banking

    What is in store for banking consolidation? Merger activity is a natural procedure by which companies make themselves more efficient and better capable to compete for customers. The banking industry is no exception

    		•
  • Q : Describe the benefits of paying late

    Describe the benefits of "paying late" (but not too late) and how do companies try to do this? Since money has time value, the later cash is paid, but not too late, the better. Companies employ remote disbursement banks to facilitate holding at

    		•
  • Q : Revision Order #2 Hello, You folks

    Hello, You folks recently completed an order for me. I'm very impressed and much thanks in advance. I'd like to submit more problems (8 attached) if you can have the same expert work on these please? Some of the #'s were slightly modified from my previous order, so should be easier than starting

    		•
  • Q : Explain Feasibility Analysis

    Feasibility Analysis: It is an analysis of the ability to finish a project successfully, taking into account legal, technological, economic, scheduling and various other factors. Instead of just diving into a project and hoping for th

    		•
  • Q : Major effects of this price floor

    Normal 0 false false

  • Q : Make mutual and stockholder-owned

    Compare and make mutual and stockholder-owned savings and associations of loan. Some savings and loan associations are owned through stockholders, just as commercial banks and other corporations are owned through their stockholders.  Other

    		•
  • Q : Compare and contrast the book value and

    Compare and contrast the book value & liquidation value per share for common stock. Is one method more reliable? Describe.The Book Value of a firm's common stock is found by subtracting the value of the firm's liabilities, and preferred stoc

    		•
  • Q : What is Sinking Fund Sinking Fund : It

    Sinking Fund: It is a fund or account in which money is deposited at customary intervals to offer for the retirement of bonded debt.

    		•
  • Q : Computing the amount of excess reserves

    Normal 0 false false