Illustrate cost of good x to drive it to equilibrium

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Reference no: EM1367201

Q. Assume market demand for good X is given by equation Qd = 100 - 20P

Market supply is given by equation Qs = 500 + 30P

(a) Find out QD and QS when cost of good X is $12.00. Is re a surplus or shortage? Illustrate what should happen to cost of Good X to drive it to Equilibrium?

(b) Find out equilibrium cost for Good X by equating Qd and Qs

Reference no: EM1367201

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