Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.

Explanation

Equilibrium price = quantity demanded = quantity supplied

Equilibrium price = Qd = 40-2P = 6P+24 = Qs

40 - 2p = 6p+ 24 
-2p - 6p = -8

24 - 40 = - 16
\(\frac{16}{8}\) = 2

substitute '2' in the equation for 'p'

Qd = 40-2(2) = 6(2)+24 
40 - 4 = 36
12 + 24 = 36

Equilibrium price = 36