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Determining equilibrium price and quantity

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Given the following data for peaches which was estimated by regression analysis
P = 80 - Q (Demand)
P = 20 + 2Q (Supply)

Given the above demand and supply equations for peaches, find the equilibrium price and quantity. Also graphically show your answer.

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Solution Summary

The solution describes the steps for determining equilibrium price and quantity for given demand and supply curves. Equilibrium is found out by using algebraic and graphical method.

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Please refer attached file for complete solution as graphs will not print here.

Solution:

P=80-Q (demand)
Qd=80-P

P=20+2Qs
2Qs=-20+P
Q=-10+0.5P

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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