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JAMB Economics 2014 Paper

Question : 49

Total: 49

Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.

Solution:

Equilibrium price = quantity demanded = quantity supplied

Equilibrium price = Qd = 40-2P = 6P+24 = Qs

40 - 2p = 6p+ 24

-2p - 6p = -8

24 - 40 = - 16

\frac{16}{8}

= 2

substitute '2' in the equation for 'p'

Qd = 40-2(2) = 6(2)+24

40 - 4 = 36

12 + 24 = 36

Equilibrium price = 36

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