Let the demand for bonds be represented by Qd300020P and the

Let the demand for bonds be represented by Qd=300-0.20P and the supply of bonds be represented by Qs=0.30P. What is the equilibrium price and quantity of these bonds? \"Q = 60, P = $180\" \"Q = 900, P = $3000\" \"Q = 180, P = $600\" \"Q = 600, P = $180\"

Solution

We know Equilibrium is a situation where quantity demanded=Quantity supplied. Or where Qs=Qd

Thus Qs=Qd

300-0.2P=0.30P

P=300/0.5=600 and Qd=Qs=300-0.2(600)=300-120=180

Thus Q=180 and Price=600

Ans is c