Assume That the Supply and Demand Functions for a Commodity

Multiple Choice

Assume that the supply and demand functions for a commodity are as follows: Supply: q = 200p; Demand: q = 4,200 - 400p.
Find the equilibrium price and the corresponding equilibrium quantity.

A) The equilibrium price is $8 when equilibrium quantity is 1,400 items.
B) The equilibrium price is $7 when equilibrium quantity is 1,300 items.
C) The equilibrium price is $7 when equilibrium quantity is 1,400 items.
D) The equilibrium price is $7 when equilibrium quantity is 1,600 items.
E) The equilibrium price is $6 when equilibrium quantity is 2,400 items.