Find equilibrium price and quantity

J

Jacob Lee

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Sep 25, 2019
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The demand for cookies is given by QD = 425 – 2P where QD is the quantity demanded of the cookies (number of cookies per day) and P is the price of cookies ($/cookie). The supply of cookies is given by QS = 5 + 3P where QS is the quantity supplied of the cookies (number of cookies per day) and P is the price of cookies ($/cookie).

a) Find the equilibrium price and quantity.

b) Let’s say, other things equal, bakers have improved their technology to produce cookies and the supply increases – the quantity supplied increases by 60 cookies per day at every possible price. Find the new equilibrium price and quantity.

For question a. I got P = $84 and Q = 257 and
for question b. I got P = $72 and Q = 281

I was wondering if someone can double check to see if I got this question correct, thanks!
 
Jacob Lee said:
The demand for cookies is given by QD = 425 – 2P where QD is the quantity demanded of the cookies (number of cookies per day) and P is the price of cookies ($/cookie). The supply of cookies is given by QS = 5 + 3P where QS is the quantity supplied of the cookies (number of cookies per day) and P is the price of cookies ($/cookie).

a) Find the equilibrium price and quantity.

b) Let’s say, other things equal, bakers have improved their technology to produce cookies and the supply increases – the quantity supplied increases by 60 cookies per day at every possible price. Find the new equilibrium price and quantity.

For question a. I got P = $84 and Q = 257 and
for question b. I got P = $72 and Q = 281

I was wondering if someone can double check to see if I got this question correct, thanks!
Click to expand...
You did NOT define 'Q'.
 
If we do not know the definitions of YOUR variables, then how can we know if you are correct or not.
Now when you define what your variable Q represents then we can tell you if you have the correct results.
 
Jomo said:
If we do not know the definitions of YOUR variables, then how can we know if you are correct or not.
Now when you define what your variable Q represents then we can tell you if you have the correct results.
Click to expand...

It represents the equilibrium quantity
 
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