Gce Model Questions Vol1 2017 Economics Question 11

Practice objective / multiple choice question 11 from the 2017 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2017 Economics Objective / Multiple Choice Easy Difficulty
Question 11 GCE_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

The market for smartphones is described by the linear demand equation \( Q_d = 500 - 5P \) and the linear supply equation \( Q_s = 100 + 3P \), where \(P\) is the price in dollars and \(Q\) is quantity in thousands of units. Determine the equilibrium price and the equilibrium quantity.

Answer Options

A. Equilibrium price = 45 dollars, equilibrium quantity = 275 (thousand units)
B. Equilibrium price = 40 dollars, equilibrium quantity = 300 (thousand units)
Correct Answer C. Equilibrium price = 50 dollars, equilibrium quantity = 250 (thousand units)
D. Equilibrium price = 55 dollars, equilibrium quantity = 225 (thousand units)
Correct Answer
C
Correct Option:
Equilibrium price = 50 dollars, equilibrium quantity = 250 (thousand units)

About This Question

This is Gce Model Questions Vol1 2017 Economics Question 11. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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