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Suppose Demand and Supply in a Market Can Be Expressed

question 98

Essay

Suppose demand and supply in a market can be expressed by these equations:
QD = 40 - 0.5P
QS = 15 + 2P
If the prevailing market price is $30,what are the quantity demanded and the quantity supplied?


Definitions:

Producing Unit

An individual entity, such as a factory or company, involved in the production of goods or services.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Selling Unit

A specific quantity or configuration of a product that is made available for sale to consumers.

Marginal Benefit

The additional satisfaction or utility gained from consuming one more unit of a good or service.

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