Suppose the demand and supply curves of a commodity x in a perfectly competitive market are given by Q_d = 700 - P and Q_s = 500 + 3P. Find the equilibrium price and equilibrium quantity.

Solution

At equilibrium price
Quantity demanded (Q_d) = Quantity supplied (Q_s)
700 - P = 500 + 3P
4P = 200 or P = 50
Equilibrium quantity (demand side) = 700 - P = 700 - 50 = 650
Equilibrium quantity (supply side) = 500 + 3P = 500 + 150 = 650

Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

Name the market structure in which firm is itself an industry.

Define the term market as used in economics.

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The Theory Of The Firm Under Perfect Competition

Suppose the demand and supply curves of a commodity x in a perfectly competitive market are given by Q_d = 700 - P and Q_s = 500 + 3P. Find the equilibrium price and equilibrium quantity.

Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

Name the market structure in which firm is itself an industry.

Define the term market as used in economics.

What is meant by monopolistic competition?

What are selling costs?

Define homogeneous product.

What is meant by differentiated product?

Define perfect competition.

Is the seller under perfect competition a price maker or a price taker?

Define monopoly.

Define market equilibrium.

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NCERT Sample Papers

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For Daily Free Study Material Join wiredfaculty

The Theory Of The Firm Under Perfect Competition

Suppose the demand and supply curves of a commodity x in a perfectly competitive market are given by Qd = 700 - P and Qs = 500 + 3P. Find the equilibrium price and equilibrium quantity.

Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

Name the market structure in which firm is itself an industry.

Define the term market as used in economics.

What is meant by monopolistic competition?

What are selling costs?

Define homogeneous product.

What is meant by differentiated product?

Define perfect competition.

Is the seller under perfect competition a price maker or a price taker?

Define monopoly.

Define market equilibrium.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Suppose the demand and supply curves of a commodity x in a perfectly competitive market are given by Q_d = 700 - P and Q_s = 500 + 3P. Find the equilibrium price and equilibrium quantity.