Consider a hypothetical situation at the Mitengo Market in Ndola where there are 1000 identical individuals buying bananas, hereafter, to be called commodity X. Each of these individuals has a demand function given by Qdx = 6-Px. In the same market there are also 100 identical producers of bananas from Ndola, each with a supply function given by Qsx = 10Px.(a) Find the market demand function and market supply function(b) Obtain the equilibrium price and quantity mathematically

The total amount of a good that is desired by everyone at each price is represented by the market…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a hypothetical situation at the Mitengo Market in Ndola where there are 1000 identical individuals buying bananas, hereafter, to be called commodity X. Each of these individuals has a demand function given by Qdx = 6-Px. In the same market there are also 100 identical producers of bananas from Ndola, each with a supply function given by Qsx = 10Px.
(a) Find the market demand function and market supply function
(b) Obtain the equilibrium price and quantity mathematically

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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