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Equilibrium market price and quantity of us dollars

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Suppose that you are managing the forex bureau of a bank that faces a perfectly competitive market comprising of 18 identical commercial banks. Suppose, further, that the market demand (Qd) for US dollars and the supply (Qs) functions for the same are given below:

Qd=170,000,000-2,000,000P

Qs=70,000,000+500,000P

i. Calculate the equilibrium market price and quantity of US dollars?

ii. Given your answer in (i), how much foreign currency will be supplied by each bank in the industry?

Reference no: EM133240914

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