If demand curve for house cleaning services is D=45000−21P and supply curve is S=15000+9P, find the equilibrium Quantity?
- A12000units
- B6000units
- C24000units
- D30000units
Solution & Step-by-step Explanation
To find the market equilibrium, we set the demand equal to the supply (D=S):
45000−21P=15000+9P
Subtract 15000 from both sides and add 21P to both sides:
45000−15000=9P+21P
30000=30P
P=
30
30000
=1000
Substitute the equilibrium price P=1000 back into either the demand or supply equation to get the equilibrium quantity:
D=45000−21(1000)
D=45000−21000=24000units
Thus, the equilibrium quantity is 24000units.
45000−21P=15000+9P
Subtract 15000 from both sides and add 21P to both sides:
45000−15000=9P+21P
30000=30P
P=
30
30000
=1000
Substitute the equilibrium price P=1000 back into either the demand or supply equation to get the equilibrium quantity:
D=45000−21(1000)
D=45000−21000=24000units
Thus, the equilibrium quantity is 24000units.