Hiram Econ 20200 – Suppose The Market Demand

Suppose the market demand for burritos is given byQd= 36 – 4P and the market supply for burritos is given byQs= 10P – 20where P is the price (in dollars) per burrito and Qd and Qs are quantities (in millions) demanded and supplied respectively. Find the equilibrium price and quantity that will prevail in the market. At a price of $5, would there be a surplus or shortage? If so, how much?

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Hiram ECON 20200 – Suppose the market demand

Question
Suppose the market demand for burritos is given by

Qd= 36 – 4P and the market supply for burritos is given by

Qs= 10P – 20

where P is the price (in dollars) per burrito and Qd and Qs are quantities (in millions) demanded and supplied respectively. Find the equilibrium price and quantity that will prevail in the market. At a price of $5, would there be a surplus or shortage? If so, how much?

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