CA Foundation P4 · Chapter 4 · Question 4 of 15
Market demand is Qd = 200 - 5P and market supply is Qs = 50 + 10P. The equilibrium price and quantity are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) P = Rs. 10, Q = 150 units
Explanation
At equilibrium Qd = Qs: 200 - 5P = 50 + 10P, so 150 = 15P and P = 10. Q = 200 - 5(10) = 150 (check: 50 + 10(10) = 150).
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