Compute the equilibrium price and quantity


Problem

The producer of a cosmetic product needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demand function of the cosmetic product is given as QD = 40 - 2P, while the supply function of the cosmetic product is given as QS = 2P where P is price, QD is quantity demanded, and QS is quantity supplied.

Task: Solve the following: The demand function is given as QD = 40 - 2P The supply function is given as QS = 2P. Calculate the equilibrium price and quantity.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Compute the equilibrium price and quantity
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