Suppose the demand and supply curves of salt are given by:

$Qd= 1000-p$
$Qs = 700 + 2p$

Find the equilibrium price and quantity.

Equilibrium price = 100, Equilibrium Quantity = 900

The correct answer is Option (1) → Equilibrium price = 100, Equilibrium Quantity = 900

Given,

$Qd= 1000-p$
$Qs = 700 + 2p$

 At equilibrium, Qd = Qs

1000-p = 700 + 2p 

3p = 300

p = 100

Substituting, p = 100 into either equation to find equilibrium quantity:

$Qd$= 1000 - 100 = 900

Equilibrium price = 100, Equilibrium quantity = 900