alleryFor the demand $Q_d = 60 - 10P$ and supply $Q_s = 5P - 15$, the equilibrium quantity traded is:
A10 units
B5 units
C45 units
D20 units
Answer & Solution
Correct answer: A. 10 units
1. First find equilibrium price by setting $60 - 10P = 5P - 15$, giving $P = 5$.
2. Substitute into demand: $Q_d = 60 - 10(5) = 60 - 50 = 10$.
3. Check with supply: $Q_s = 5(5) - 15 = 25 - 15 = 10$.
4. Both give 10 units, so option A is correct.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit II "Determination of Prices", p.2_
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