Let eq= equilibrium
at eq, qd=qs
substitute qd= 15 - 1.5p and qs=p in the above derived equation to find the equilibrium price (P.e)
therefore, 15 - 1.5p = p
group like terms
-1.5p - p = -15
-2.5p = -15
make p the subject of the equation by dividing both side by -2.5
therefore,
-2.5p/-2.5 = -15/-2.5
p = 6
the equilibrium price (P.e) is 6
to find your equilibrium quantity you substitute 6 in any of the function. But not that the quantity will also be equal to 6 since the supply function (Qs) is equal to Price(P). This is illustrated below:
Qs= p
where p = 6
therefore,
Qs = 6
also you can use the demand function to confirm your answer. See below
Qd= 15 - 1.5p
where p = 6
therefore,
Qd = 15 - 1.5(6)
Qd= 15 - 9
Qd= 6
at eq, qd=qs
substitute qd= 15 - 1.5p and qs=p in the above derived equation to find the equilibrium price (P.e)
therefore, 15 - 1.5p = p
group like terms
-1.5p - p = -15
-2.5p = -15
make p the subject of the equation by dividing both side by -2.5
therefore,
-2.5p/-2.5 = -15/-2.5
p = 6
the equilibrium price (P.e) is 6
to find your equilibrium quantity you substitute 6 in any of the function. But not that the quantity will also be equal to 6 since the supply function (Qs) is equal to Price(P). This is illustrated below:
Qs= p
where p = 6
therefore,
Qs = 6
also you can use the demand function to confirm your answer. See below
Qd= 15 - 1.5p
where p = 6
therefore,
Qd = 15 - 1.5(6)
Qd= 15 - 9
Qd= 6
