Practise equating demand and supply functions to calculate equilibrium price and quantity, then plotting or reading the equilibrium from a labelled market diagram.
The market for corn on the island of Nissos is perfectly competitive. The demand and supply for corn in Nissos are given by the functions
where Q d is the quantity of corn demanded per month in millions of kilograms ( kg ), Q s is the quantity of corn supplied per month in millions of kg and P is the price per kg of corn in dollars ($).
Calculate the monthly equilibrium quantity of corn in Nissos.
Plot and label on Figure 1 the market demand curve and the market supply curve for corn in Nissos.
Figure 1