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xiaoyu000 xiaoyu000
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2 weeks ago
Suppose the equation for the demand curve is P = 8 – 3Qd and the equation for the supply curve is What is the equilibrium price and quantity? Round your final answer to two decimal places.

▸ $0.29, 2.57

▸ $0.29, 2

▸ $2.00, 2.57

▸ $2.00,2
Textbook 

Macroeconomics


Edition: 3rd
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shadowblacwshadowblacw
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More solutions for this book are available here
$2.00,2

Equilibrium is found where the quantity demanded equals the quantity supplied.

Demand Curve: P = 8 - 3*Q or Q = (8 - P)/3

Supply Curve: P = 1 + 0.5*Q or Q = (P - 1)/0.5

Equilibrium occurs where quantity demanded equals quantity supplied:
(8-P)/3=(P-1)/0.5
0.5*(8-P) = 3*(P-1)
0.5*8 - 0.5*P = 3*P - 3*1
0.5*8 + 3*1 = 3*P + 0.5*P = P*(3+0.5)
P = (0.5*8+3*1)/(3+0.5) = $2.00

Therefore, equilibrium quantity equals (8 - 2.00)/3 = 2

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