In a Market the Demand Curve Is Given by P

question 1

Multiple Choice

In a market the demand curve is given by P = 120 - 2q and supply by P = q.What are the equilibrium price and quantity traded?

• A)P* = 60, q* = 60
• B)P* = 40, q* = 80
• C)P* = 40, q* = 40
• D)P* = 20, q* = 40
• E)None of the above.