Suppose demand can be described with the equation Q = 900?5P and supply with the equation Q = 100 + 5P. Complete the following table. Determine the equilibrium price and quantity.
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Quantity
Quantity
Surplus/
Price
Demanded
Supplied
Shortage
$100
_____
_____
_____
95
_____
_____
_____
90
_____
_____
_____
85
_____
_____
_____
80
_____
_____
_____
75
_____
_____
_____
70
_____
_____
_____
65
_____
_____
_____
60
_____
_____
_____
?
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What will be an ideal response?
Quantity | Quantity | Surplus/ | |
Price | Demanded | Supplied | Shortage |
$100 | 400 | 600 | +200 |
95 | 425 | 575 | +150 |
90 | 450 | 550 | +100 |
85 | 475 | 525 | +50 |
80 | 500 | 500 | 0-EQUILIBRIUM |
75 | 525 | 475 | ?50 |
70 | 550 | 450 | ?100 |
65 | 575 | 425 | ?150 |
60 | 600 | 400 | ?200 |
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