The demand and supply functions of commodity x are given as follows: Qd = 20-…

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Economics JAMB 2015

The demand and supply functions of commodity x are given as follows: Qd = 20- 2p, Qs = 6p – 12 where p = price, Qd = quantity demanded and Qs = quantity supplied. Determine the equilibrium price

  • N4 checkmark
  • N8
  • N2
  • N10

The correct answer is: A

Explanation

Qd = 20 - 2p
Qs = 6p - 12
Therefore, equilibrium price is Qd = Qs
20 - 2p = 6p-12
20 + 12 = 6p+2p
32 = 8p
Equilibrium price = 32/8= 4
Equilibrium price = N4
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