[LS1toSVT]

I forget if we are allowed to ask for help in here, if not please do whatever you have to to abide by the rules. Thanks!

For my Microeconomics class I'm having a hard time understanding this question. I don't know what I need to do to the equations. I guess a good place to start would be with the question so here it is:

Assume the demand for a commodity is represented by the equation P=10-.2Qd (subscripted d that is) and supply by the equation P=22+.2Qs(subscripted s ), where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Using the equilibrium condition Qs=Qd solve the equations to determine equilibrium price. Now determine equilibrium quantity.

I don't know...the wording of it just confuses me. do I have to substitute for Price or quantity? How do you go about this, I don't want it solved or anything I just want to know how to do it since I have more like this one regardless.

Thank you so much!

[masturyan]

Set the two equations equal to each other and solve.

Listen to her, she's right:

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[Elysia]

so yeah, since Qd = Qs, you set the equations equal to each other;

but since your equations are not set up so it's Qd = xP + c and Qs = xP + c, you need to rewrite the equations so they are set equal to Qd and Qs...

for example, your equation is P=10-.2Qd, i would rewrite that as Qd = (P-10)/(-.2) -- basic algebra

do the same for Qs, and then you can set them equal eachother with only one constant, P, so then you can solve for "P" just using algebra.

since you now have P* (equilibrium price), just stick that back into either original equation and solve for Q* (equilibrium quantity).

goodluck... i miss good ol' micrcoecon. haha wait til you get to upper level econ courses you'll wish you had problems like these!

[LS1toSVT]

^thanks so much, really appreciate it!!