Question

The demand for books is: qd = 120 - p the supply of books is: qs = 5p 4) refer to scenario 2.1. what is the equilibrium price of books?
a.5
b.15
c.20
d.10
e.none of the above

Answer 1

You just have to find the intersection between the demand and the supply:

Qd = 120 - p

Qs = 5p

When the quantities match:

120 - p = 5p

6p = 120

p = 20 monetary units