Microeconomics,, 16th Canadian Edition

b. What is the condition for equilibrium in this market?

c. By imposing the condition for equilibrium, solve for the

equilibrium price.

d. Substitute the equilibrium price into either the demand or

the supply function to solve for the equilibrium quantity.

Check to make sure you get the same answer whether

you use the demand function or the supply function.

e. Now suppose there is an increase in demand so that the

new demand function is given by

Compute the new equilibrium price and quantity. Is your
result consistent with the “law” of demand?
f. Now suppose that with the new demand curve in place,
there is an increase in supply so that the new supply
function is given by Compute the new
equilibrium price and quantity.
19. Find the equilibrium price and quantity for each of the following
pairs of demand and supply functions.
a.
b.
c.
d.
e.

QD= 180 − 3 p

QS= 90 + 2 p.

QD= 10 − 2 p QS= 5 + 3 p

QD= 1270 − 10 p QS= 1000 + 20 p

QD= 100 −0.25p QS= 40 +.25p

QD= 6000 −0.2p QS= 4000 +0.8p

QD= 10000 − 100 p QS= 100 p