Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.

A. 34
B. 32
C. 36
D. 16

Correct Answer:

Option B – 32

Explanation

Equilibrium price = quantity demanded = quantity supplied

Equilibrium price = Qd = 40-2P = 6P+24 = Qs
40 – 2p + 2p = 6p+ 24 + 2p
40 = 6p + 26
40 = 32p