In the graph, what are the equilibrium price and quantity? Demand D (Qd = 100 − 10P) and supply S (Qs = 10P − 20) cross at E: price ₹6, quantity 40.

Market Equilibrium & Price Controls · Question 3 of 52

In the graph, what are the equilibrium price and quantity?

Question 3

MediumOriginal question

In the graph, what are the equilibrium price and quantity?

Demand D (Qd = 100 − 10P) and supply S (Qs = 10P − 20) cross at E: price ₹6, quantity 40.

₹4 and 60 unitsCorrect answerYour answer₹8 and 20 unitsCorrect answerYour answer₹10 and 0 unitsCorrect answerYour answer₹6 and 40 unitsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Set Qd = Qs: 100 − 10P = 10P − 20, so 20P = 120 and P = ₹6.
Q = 100 − 60 = 40 units (check: 60 − 20 = 40).

Concept: Solving for equilibrium
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEquilibrium price and quantity

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In the graph, what are the equilibrium price and quantity?

Question 3

Explanation