Jenna S asked in Social ScienceEconomics · 9 years ago

The producer of a cosmetic product needs to decide the optimal price?

The producer of a cosmetic product needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demand function of the cosmetic product is given as QD = 40 – 2P, while the supply function of the cosmetic product is given as QS = 2P where P is price, QD is quantity demanded, and QS is quantity supplied.

Solve the following:

The demand function is given as QD = 40 – 2P

The supply function is given as QS = 2P

Calculate the equilibrium price and quantity

Any help would sure be appreciated! I'm just not sure where to start.

1 Answer

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  • Anonymous
    9 years ago
    Favorite Answer

    Qd=Qs, 40-2P=2P

    4P=40,P=40/4=10

    Qd=Qs=2x10=20

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