Answer to Question #316379 in Macroeconomics for Ayeyi

Question

Find an expression for the equilibrium quantities X and Y

Answer 1

Equilibrium quantities for X and Y will be

Q_d = x + yP

Where:

• Q_d = the quantity of demand
• X = quantity
• P = price

Q_s = x + yP

Where:

• Q_s = the quantity supplied
• X = quantity
• P = price

Therefore, the equilibrium price sets the two equal to each other:

Q_s = Q_d