Practice prompt · Q:economics-and-market-foundations/solve-market-equilibrium-001

Solve and bound a linear market equilibrium

Solve the crossing, reconcile both quantities, and reject unsupported observed price and fairness conclusions.

Updated Aug 7, 2026 Review due Nov 7, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

For Qd = 1,400 - 10P and Qs = 200 + 10P, which result and interpretation are correct?

Choose the best answer. a $60 and 800 chairs per week; both functions reconcile there, but the supplied model does not prove an observed trade, instantaneous adjustment, or fairness. b $80 and 60 chairs because the equation labels can be read without preserving price and quantity units. c $60 and 800, therefore every buyer and seller traded at a fair price.

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Answer: a

Choice a. Solve 1,400 - 10P = 200 + 10P to obtain P* = $60, then verify Qd = Qs = 800 chairs per week and stop at the model boundary.