Expert: Richard J. Raridon - 6/21/2009

Question
Hello,
I am completely lost in the area of algrebra. I am 22 years old. I am hoping you can explain, if possible, how to solve the following equation: (this is macroeconomics) 1.Qd= 9 - 1P 2.Qs = -5 + 1P 3. Qs= Qd
A. P* then equals_________
B.Q* then equals _________
I am hoping you can explain the steps in order for me to figure out this problem, I am lost!
Thank you very much for offering your time.


Answer
If Qs = Qd then -5+P (you don't need the 1) = 9-P.
You can add or subtract the same thing from both sides of an equals sign without changing the answer so add P to each side to get
-5+2P = 9.  Now you can add 5 to each side to get 2P = 14.  You can also multiply or divide both sides by the same thing so if you divide by 2 you get P = 7 and therefore Q = 2