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Assume That the Market Demand and the Market Supply Are QD=20+2PQS=102P\begin{array} { l } Q _ { D } = 20 + 2 P \\Q _ { S } = 10 - 2 P\end{array}

Question 87

Essay

Assume that the market demand and the market supply are governed by the following equations:
QD=20+2PQS=102P\begin{array} { l } Q _ { D } = 20 + 2 P \\Q _ { S } = 10 - 2 P\end{array}
(i)Is the demand consistent with the law of demand? Please justify your answer.
(ii)Is the supply consistent with the law of supply?

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