Supply and Demand calculation

hightechhippie

New member
Joined
Nov 4, 2010
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Hello Forum,

I have a problem in Economics I am having trouble solving, I am hopping someone in here can assist me. Below is the problem. ANd thank you in advance for any help.

Dexter
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Supply and demand conditions in this competitive service market in New York are:

QS = 2P – 20 (Supply)

QD = 80 - 2P (Demand)

Where Q is thousands of hours of floor reconditioning per month, and P is the price per hour.

A. Algebraically determine the market equilibrium price and output combination

B. Use a graph to confirm your answer.

For the graph, use price (P) values of 10, 20, 30, 40, and 50 to determine quantities demanded and
quantities supplied.


Any insite would be great
 
hightechhippie said:
Hello Forum,

I have a problem in Economics I am having trouble solving, I am hopping someone in here can assist me. Below is the problem. ANd thank you in advance for any help.

Dexter
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Supply and demand conditions in this competitive service market in New York are:

QS = 2P – 20 (Supply)

QD = 80 - 2P (Demand)

Where Q is thousands of hours of floor reconditioning per month, and P is the price per hour.

A. Algebraically determine the market equilibrium price and output combination

B. Use a graph to confirm your answer.

For the graph, use price (P) values of 10, 20, 30, 40, and 50 to determine quantities demanded and
quantities supplied.


Any insite would be great

What is the condition for equilibrium?
 
There was no information about the equilibrium but so far this is what I have came up with , I just need to graph it in Excel now
First I set the supply equal the demand, I got the method from my book

Qd=Qs

80-2pc=2pc-20 so
100 =4pc

25=p

so market equalization is when the price is at 25 dollars.
 
Thanks for the feedback, did my answer seem correct to you?

I was going to upload an image of my excel graph but I don't have a web server to post it on, i know how but it would take longer than its worth i think.
 
hightechhippie said:
There was no information about the equilibrium but so far this is what I have came up with , I just need to graph it in Excel now
First I set the supply equal the demand, I got the method from my book

Qd=Qs

80-2pc=2pc-20 so
100 =4pc

25=p

so market equalization is when the price is at 25 dollars.
 
crakers said:
hightechhippie said:
There was no information about the equilibrium but so far this is what I have came up with , I just need to graph it in Excel now
First I set the supply equal the demand, I got the method from my book

Qd=Qs

80-2pc=2pc-20 so
100 =4pc

25=p

so market equalization is when the price is at 25 dollars.


I got a different answer, but still need help with the graphing
 
determine equilibrium price & output.
Quantity supplied as equal to Quantity demanded.
-20+2P=80-2P

P=$25
Quantity Supplied & Demanded =30 (at equilibrium)

It gives you the prices you should graph (10, 20, 30, 40, 50, 60, 70, 80, 90) x axis will be quantity y axis would be price.


This is were I am stuck.. I do not know how to graph this or how to figure the X axis values for QS and QD.. Someone please help me or show me how to graph
 
I am crakers not both,, I have same question and I did not see the graph so I asked again
 
2P – 20 = 80 - 2P
4P = 100
P = 25

You said you got a different answer; show what you got, and how.
 
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