Find the equilibrium price Pe and quantity Qe for each of the following markets using (1) equations and (2) graphs:

Substituting Qe = 800 in the supply (or demand) equation,

(2) See Fig. 4-15.

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(a) Supply: P = 30+ 10 Demand: P=Q+80 (1) Setting Ps Pd for equilibrium and solving for Q, = 30+10=-Q+80 Q = 70 Q = 20 = Qe Then substituting Qe = 20 in the supply (or demand) equation, (2) See Fig. 4-14. (b) Supply: P=2+200 Demand: P = Q+800 (1) +2002+800 314 Q = 600 Q = 800 = Qe P = 3(20) + 10 P = 70 = Pe