Answer
Let us suppose we have two simple supply and demand equations
Qd = 20 – 2P
Qs = -10 + 2P
To find where QS = Qd we put the two equations together
20-2P = -10 + 2P
20+10= 4P
30/4=P
P = 7.5
To find Q, we just put this value of P into one of the equations
Q = 20 – (2×7.5)
Q= 5
Work Step by Step
Generally speaking, an equilibrium is defined to be the price-quantity pair where the quantity demanded is equal to the quantity supplied. It is represented by the intersection of the demand and supply curves.
