Answer :

At the perfect competition, demand and supply are equal.

Qd = Qs


2200 - 3p = 1800 +2p


2200-1800= 2p +3p


400=5p


P = 400/5


P = 80


Qd= 2200-3p


Qd = 2200 - 3* 80


Qd = 2200 - 240


Qd = 1960


The equilibrium price and equilibrium quantity of the commodity X is Rs 80 and 1960 units.


OR



● The x-axis represents quantity and the y-axis represents price.


● The market is in equilibrium at point E.


● A decrease in the supply will shift the supply curve towards the left.


● The original supply curve is SS. It will shift left towards S'S'.


● This will create excess demand which will lead to an increase in competition among the buyers.


● The new supply curve intersects the original demand curve at a higher equilibrium point of E'.


● The equilibrium price will increase from OPe to OPe'.


● The equilibrium quantity will fall from OQe to OQe'.


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