Help in MCQ question June 2005 Paper 1 Q12

[arvind0708]

12 The market demand equation for a good is given by Qd = 310 - 20 p
and the supply equation by Qs = 10 + 10 p,
where p denotes the price of the good.
What is the equilibrium price?
A 5 B 10 C 15 D 20

 

[Xenon]

at equilibrium price, Qd = Qs.
putting values of p in the equations, when p = 10, Qd = 110 and Qs =110 as well. thus the equilibrium occurs when price is 10.
ans: B