Assume there are 10,000 identical individuals (consumers) in the market for
commodity x each with a demand function given by Qdx = 12 – 2Px and
1,000 identical producers of commodity x, each with a supply function
which takes the form Qsx = 20 Px.
Required:
(i) Determine the market demand and market supply functions for
commodity x. (4 marks)
(ii) Compute the market equilibrium price (Px) and quantity (Qx)
(6 marks)