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31-10-2020
Mathematics

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Qd=240-5P
Qs =P
Where qd is the quantity demanded, qs is the quantity supplied and p is the price. Determine the equilibrium quantity before the tax

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PiaDeveau PiaDeveau

05-11-2020

Answer:

Equilibrium quantity before the tax = 40 units

Step-by-step explanation:

Given:

Qd = 240 - 5P

Qs = P

Computation:

Qd = 240 - 5P

P = 48 + Qd/5

Equilibrium quantity before the tax

Qd = 240 - 5P

P = 240 - 5P

6p = 240

p = 40

Qd = 240 - 5P

Qd = 240 - 5(40)

Qd = 40

Equilibrium quantity before the tax = 40 units

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