Answer:
The equilibrium price = 180
The equilibrium quantity of the product = 240
Explanation:
Data provided in the question:
Demand: P = 300 – (1/2)Q
Supply: P = 100 + (1/3)Q
Now,
For equilibrium
Demand = Supply
300 – (1 ÷ 2)Q = 100 + (1 ÷ 3)Q
or
300 - 100 = (1 ÷ 3)Q + (1 ÷ 2)Q
or
200 = [tex]Q(\frac{1}{3}+\frac{1}{2})[/tex]
or
[tex]Q\times\frac{5}{6}[/tex] = 200
or
Q = 200 × (6 ÷ 5)
or
Q = 240
Therefore,
equilibrium price will be
P = 300 – (1/2)(240)
= 300 - 120
or
= 180
Hence,
The equilibrium price = 180
The equilibrium quantity of the product = 240
