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Suppose the demand and supply curves of tea are given by: qD = 1,000 – p qS = 700 + 2p Calculate equilibrium price. |
790 100 900 810 |
100 |
The correct answer ios Option 2: 100 At equilibrium, market supply = market demand. Equating them, we get 1000-p = 700+ 2p 1000-700 = 2p + p 300 = 3p 100 = p Thus, the equilibrium price is 100. |
