Calculate the equilibrium price and the equilibrium quantity

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Reference no: EM131009603

The following two equations express the relationship between price and quantity.

(1) Q = 20 – 2P

(2) Q = 5 + 3P

1) Which equation is the demand equation, (1) or (2)?

2) Calculate the equilibrium price and the equilibrium quantity? Show your math.

3) At what price is there a shortage of 5 units? Show your math.

Reference no: EM131009603

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