alleryConsider a market with demand $Q_d = 60 - 10P$ and supply $Q_s = 5P - 15$. The equilibrium price is:
A₹3
B₹7
C₹9
D₹5
Answer & Solution
Correct answer: D. ₹5
1. Set quantity demanded equal to quantity supplied: $60 - 10P = 5P - 15$.
2. Collect terms: $60 + 15 = 5P + 10P$, so $75 = 15P$.
3. Solve: $P = 75 / 15 = 5$.
4. The equilibrium price is ₹5, so option D is correct.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit II "Determination of Prices", p.2_
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